Business Lawyer, Business Formation, Incorporation
Incorporating is the most powerful thing you can do to legitimize your business affairs. By incorporating, you are separating your business assets from your personal assets to prevent your savings, home, retirement and other personal assets from being targeted by a lawsuit against your business.
Incorporating builds tax flexibility, credibility and name protection as well as opening the door to tremendous advantages, including:
In such a litigious society, incorporating to protect yourself makes great sense. No other structure gives you and your business the liability protection offered by incorporation. Nearly every state has adopted statues that limit the liability of corporate representatives, including officers, directors and shareholders. Corporations can be sued, file bankruptcy, or be involved in other unfortunate activities. However, when you incorporate, the business owner is only held responsible for the amount of money they personally invest. Personal assets typically are not at risk for the debts and liability of the business.
By incorporating, you are taking the necessary step to separate your business assets from your personal assets. It doesn't take a catastrophic lawsuit to wipe out everything you own. Could you satisfy all your business obligations without tapping into personal reserves or losing personal assets? Existing and unrealized assets are all at risk in the event of an unfavorable judgment. Incorporating takes this burden off your shoulders knowing that your personal assets cannot be targeted in the event of a business lawsuit.
There is a myriad of tax benefits that can be achieved by utilizing a corporate entity. Corporate entities are entitled by law to many tax deductions not afforded to individuals. Additionally, the self-employment tax savings alone can amount to thousands of dollars annually.
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