| vantages to Incorporating | | | | other business entities. When you |
| | | | incorporate you create a separate and |
| | | | distinct legal entity. Because of this, |
| | | | there are many transactions that you can |
| There's no question that hard work and a | | | | structure between you and your corporation to |
| little luck is what it takes to BE | | | | save big money on taxes. For instance, if |
| successful. But a little knowledge, | | | | you own a building you can rent office |
| especially when it comes to setting up your | | | | facilities to your corporation and claim |
| business, will help you STAY successful. | | | | depreciation and other deductions for it. |
| | | | Your corporation can then claim the rental |
| While many business owners give a lot of | | | | expense. You are prohibited from doing this |
| thought to location, store décor, customer | | | | if you are a sole proprietor or a partner in |
| service, hiring employees and management | | | | a partnership. |
| issues (and rightly so); choosing the proper | | | | |
| business structure (such as sole proprietor, | | | | Privacy and Confidentiality - The corporate |
| partnership, corporation, limited liability | | | | form of business is a great way to keep your |
| company) doesn't get the attention it | | | | identity and business affairs private and |
| deserves. Many entrepreneurs don't realize | | | | confidential. If you want to start a |
| this, but the business form they choose can | | | | business, but would like to remain anonymous, |
| often times be the difference between success | | | | a corporation is the best way to accomplish |
| and failure, especially in today's | | | | this. States such as Nevada offer even more |
| competitive and litigious marketplace. If | | | | privacy protection for corporations and their |
| you want to succeed, you need all the | | | | shareholders. |
| advantages you can get. High on the list of | | | | |
| safe bets is the corporate form of business. | | | | Easier to Raise Capital - When you're looking |
| | | | to raise money through investment or |
| Incorporating, while definitely not for | | | | borrowing, a corporation can actually make |
| everybody, offers several distinct and | | | | finding and getting the money you need |
| money-saving advantages over the other types | | | | easier. If you want to take on investors you |
| of entities. Here are seven of those | | | | simply sell shares of stock. If you want to |
| advantages: | | | | borrow, a corporation can add clout when |
| | | | dealing with banks or other lending |
| Asset Protection - If you operate as a sole | | | | institutions. |
| proprietor or partnership, there is virtually | | | | |
| unlimited personal liability for business | | | | Perpetuity - As I mentioned in #3, when you |
| debts or lawsuits. In other words should you | | | | incorporate you create a separate and |
| go out of business or be a defendant in a | | | | distinct legal entity. This separate and |
| lawsuit, your personal assets such as homes, | | | | distinct entity (the corporation) can endure |
| jewelry, vehicles, savings, etc. are up for | | | | almost forever irrespective of what happens |
| grabs. This is generally NOT the case when | | | | to the shareholders, directors, or officers. |
| you incorporate. When you incorporate you | | | | This is NOT the case with sole |
| are only responsible for your investment in | | | | proprietorships, partnerships or even limited |
| the corporation. The limited liability | | | | liability companies. For example, if an |
| feature of a corporation, while not a | | | | owner, partner, or member dies the business |
| guarantee, is DEFINITELY one of the most | | | | AUTOMATICALLY ends or gets wrapped up in |
| attractive reasons for incorporating. | | | | legal red tape. Corporations, on the other |
| | | | hand, have unlimited life. |
| Easier To Sell - Corporations are generally | | | | |
| much easier to sell and are usually more | | | | Increases Credibility - Let's face it. Most |
| attractive to buyers than either a sole | | | | people feel more secure and confident dealing |
| proprietorship or partnership. The reason | | | | with a corporation as opposed to a sole |
| for this is because a new buyer will not be | | | | proprietorship. Having INC. or CORP. after |
| personally liable for any wrongdoings on the | | | | your company's name adds a touch of |
| part of the previous owners. If someone buys | | | | professionalism and credibility to your |
| a sole proprietorship, for example, the new | | | | business dealings. |
| owner can be held personally liable for any | | | | |
| mistakes or illegalities on the part of the | | | | As always, be sure to consult with your |
| prior owner…even if the new owner had | | | | attorney or business advisor before |
| NOTHING to do with the situation! This is | | | | undertaking any important legal or financial |
| usually NOT the case with a corporation. | | | | decision. While there are many advantages |
| | | | and money-saving reasons to incorporate, as |
| Tax Savings - When you incorporate there are | | | | I've said before, it's not for everybody. |
| numerous tax advantages at your disposal that | | | | However, you do owe it to yourself to find |
| are virtually impossible to accomplish with | | | | out more. |