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Saturday, December 24, 2016

Is Incorporating the Best Choice for Your Business?


by Melissa Gordon

With so many choices for establishing a legal entity for your business, it can be a tough decision to make. Every business is different and requires a different approach. But unless you�re an attorney or other legal professional, the investigation process can be lengthy and confusing.

Corporations are a popular choice when it comes to forming legal entities. There are lots of pros and cons to the corporation, all of which should be considered before moving forward with the filing process.
The perks of incorporating your business are plentiful. Incorporating your business is a great way to avoid �double taxation�, in which you must pay Self Employment tax as well as Federal rate tax. An incorporated business comes with considerable tax advantages and write-offs.

Corporations also protect the business owner through Limited Liability. In a sole proprietorship, the owner�s assets can be seized if the business is seized. However, this is not the case with a corporation. If someone decides to sue your corporation, your personal assets and finances are safe from seizure.
Incorporation also establishes your business as a serious organization. Clients, as well as other professionals, will take your business seriously as a corporation. Your business will also have more credibility with banks and lenders as a corporation. You also have the ability name shareholders and officers within your corporation.

But with the fun of a having a �board of directors� comes a few hoops every corporation owner must jump through on a fairly regular basis. Corporations are required to hold regular meetings with officers and record minutes for those meetings. Many corporation owners view this requirement as an inconvenience and, at times, an expense.

Another thing for business owners to consider is the varying state laws regarding corporations. The annual expense of maintaining a corporation can vary widely depending on your state�s laws. It�s important to take these fees and taxes into account when deciding whether a corporation is the best thing for you.
Corporations also require significant documentation, paperwork, and filing especially when it comes to tax season. Unless you�re an accountant, filing an annual tax return for a corporation can be challenging and may require the help of a professional. You may want to budget in the additional cost of hiring an accountant to file your annual tax return.

For years, many business owners have shied away from corporations because of the expensive incorporation fees. This is certainly something to consider when making the decision to incorporate your business. But with the development of online incorporation services, business owners now have the option to incorporate online for a much more manageable investment. Incorporation fees used to cost thousands of dollars. Now, it only costs a few hundred dollars to incorporate online.

If a corporation is the right thing for you, you can incorporate your business without breaking the bank. Just be sure to do your research and thoroughly investigate your options to determine the best entity for you and your business.

Disclaimer: This article is for informational and entertainment purposes only, and should not be construed as legal advice on any subject matter.

Melissa Gordon is the publisher of LegalBuffet.com, a complete online resource that compares the legal services offered by various online companies. Find the best company for your business incorporation needs at http://legalbuffet.com/incorporation-services.