Why Incorporate?
All legal and tax professionals agree, if your business is not incorporated
you may be throwing away thousands of dollars in tax savings and deductions.
In addition, all of your personal assets such as your home, cars, boats,
savings and investments are at risk and could be used to satisfy any law suits,
debt or liability incurred by the business. Forming a Corporation can provide
the protection and tax savings needed to give you peace of mind and make your
business even more successful and profitable.
Some Benefits Include:
Liability Protection: Properly forming and maintaining a corporation
will provide personal liability protection to the owners or shareholders of the
corporation for any debt or liability incurred by the business. Personal
liability of the shareholders is normally limited to the amount of money
invested in the corporation.
Tax Advantages: Another important benefit is that a corporation can
be structured many ways to provide substantial tax savings. You can minimize
self-employment taxes and increase the number of allowable deductions lowering
the taxes you pay on the income of the business. Many corporations structure
retirement and tax deferred savings plans for their owners and employees which
can provide even greater tax savings.
Raising Capital: Sale of stock for the purposes of raising capital is
often more attractive to investors than other forms of equity sales. A
corporation can also issue Corporate Bonds to raise capital for expenditures
without compromising the ownership of the business.
