Why Should I Incorporate?

In a sole proprietorship or partnership, the individual or partners are personally liable for all business debts. However, it is never too late to get the additional "limited liability" protection that Corporations and Limited Liability Companies enjoy. Simply incorporate your existing business and the protection is automatic.

Tax Advantages

Corporations and LLCs can take advantage of tax savings options that are not available to sole proprietorships or partnerships. For example, corporations can establish pension, profit-sharing and stock ownership plans, which can lower the corporation's taxable income. Medical, life and disability insurance premiums are also completely tax deductible for corporations. In addition, a corporation can own shares of stock in another corporation and receive 80 percent of the dividends tax-free.

Raising Capital to Grow & Operate Your Business

Corporations can raise capital by issuing stock, bonds or other securities.

Protecting Your Business Name

When you form a corporation or LLC, your company name is registered with the state of formation. At that point, no other corporation or LLC is allowed to register another corporation or LLC with the exact name you have already filed. If you don't incorporate, someone else can start a business in your state with the same name you have already used.

Ease in Transferring Assets

Corporations and LLCs are the most enduring form of business structure. If a corporation owner dies, their portion of the business can be transferred quickly without interruption of the corporation's operations.

Estate and family planning is simplified since shares of a corporation can be easily distributed to family members.

Establishing the Credibility of Your Business

Corporations and LLCs often experience a greater ease in doing business. Many stores and banks favor corporate accounts and offer discounts.