At a certain growth stage of your small business, you might want to consider whether you should incorporate your business or not. Read on to learn more…
Business incorporation, in essence, will allow you to separate between your business and your personal assets. There are many operations, such as Sun Doc Filings, out there that can handle the entire incorporation process so that you will only have limited liability toward your business. Business incorporation should benefit you, the small business owner, the most.
However, not all business owners can benefit from business incorporation; there is no one size fits all in incorporating your business.
Of course, there is no right or wrong answer in business incorporation. The issues you should address are related to what liability concerns you have in mind and what kind of tax benefits you hope to get from the incorporation.
A case study
Here is a very useful Q and A from MSN’s Business on Main – basically, the question is this:
There are some important points we can learn from the Q and A, but the most important one for me is that not only you should incorporate your business to protect your personal assets if any legal claims occurred against your restaurant business, but you should also consider to create two separate entities for your business: one for the restaurant business and one for the building and land.
It’s for the same reason: When legal claims occurred, the real estate will be well protected.
Furthermore, incorporating your business can help you reduce certain expenses. For instance, a repair on your restaurant premise is usually considered to be tax-deductible. Read the Q and A to learn more about it.
A guide on business incorporation: yours for free!
We have compiled a mini-guide on business incorporation for small business. The 13-page e-book will give you a brief on business incorporation that answers these most common questions: Should I incorporate? When should I incorporate? How to incorporate?
Business incorporation 101
Disclaimer: I receive incentives to share my views on this particular blog post, but all of the opinions are my own. My blog is a part of an online influencer network for Business on Main.