There are many good reasons to incorporate your business, and it’s important to keep all of these in mind as your company gets off the ground. Before you ever open your doors to the public, it’s a good idea to incorporate your business. Choosing the right business structure could be the difference between success and failure.
Here are five of the main reasons to incorporate:
- Personal asset protection
- Tax deductible expenses
- Tax flexibility
- Brand protection
- Enhanced reputation
All of these are important to running a successful business. For example, once you incorporate, you’ll find it easier to take advantage of a variety of tax deductible expenses. This can save you a lot of money, year in and year out.
Incorporating also provides you with personal asset protection. This goes a long way in providing peace of mind, as you don’t have to be concerned that your personal assets could come into play should you face a lawsuit or find it difficult to pay your debts.
You have the option to incorporate your business at any time, but it makes most sense to do this before you ever get started. This is one of the most important setup steps you can take.
If you need any help incorporating your business, don’t hesitate to consult with an attorney or tax professional. This is a big decision that will impact your company for many years to come, so you want to make sure that you take all the right steps at the right time. There is no room for mistakes.
Source: Incorporate, “Why Should I Incorporate My Business?,” accessed July 13, 2017