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June 2010 Newsletter Follow Us
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 Why Should You Incorporate?Well, there are several reasons. Incorporating your business has many advantages that will make it easier for you to operate and maintain your company, without being personally liable for any losses. Perhaps the most important reason to incorporate is to protect your personal assets. This holds true for whichever business entity structure you choose, whether it is incorporation, LLC (limited liability corporation), or non profit – but it is not the case for a sole proprietorship or a partnership. If an incorporated business fails, or a dissatisfied customer or supplier brings a suit against it, only the corporate holdings are liable. Your personal property and finances will all be safe from legal action, as long as the business has not committed any fraudulent activity. Another financial benefit of incorporating is the fact that a corporation, as a separate legal entity with a unique tax ID number, can borrow funds, and sell equity to raise capital. The uncomplicated transfer and limited liability make investing in a corporation or LLC particularly attractive to those who might want to send some money your way. Corporations also pay a lower federal income tax rate than individuals, and may also be eligible for tax deductions that are not available to sole proprietors or partnerships. Another money-saving feature is the fact that you can generally incorporate your business by yourself, without paying an attorney. There are filing fees involved, and there is still research to be done, but there are resources such as our website www.CorpNet.com that can help you every step of the way! Visit http://www.corpnet.com/incorporate/how-to-incorporate/ to learn what you need to do to incorporate a business, and how we can assist you in filing the necessary paper work to incorporate your business quickly and affordably saving you time and money. Of course, if you have specific legal questions or concerns, you should consult an attorney for sound advice. If you’re interested in establishing a long-standing business (and who isn’t?), incorporation is your best choice. Unlike a sole proprietorship, which ends with the owner’s death, a corporation will continue indefinitely, until it is dissolved. Your company can be carried on by future generations, or you may sell, gift or bequeath it to others. If you operate as a sole proprietor, you must remain at the root of your business, and cannot transfer it to another owner. On the other hand, a corporation can be transferred using shares of stock. A final reason for choosing incorporation is the boost that it gives to your image. Marketing studies have shown that corporations and LLCs are viewed as more trustworthy by the buying public. These businesses give customers and suppliers a greater sense of security than an unincorporated company. I’ve seen this happen many times with both friends and clients. In fact, I was just talking to a friend of mine who was telling me about her brother-in-law and how for nearly 20 years he ran an unincorporated contracting business. When he finally decided to incorporate, he was amazed at the increase in the number of calls he received from unsolicited clients. The moral of the story? Take the time to incorporate. It will protect you and your business. It will give your customers faith in your company and your services. And you’ll be surprised at how happy it makes you the first time you see your company name in print – really, it’s a thrill. WHAT ARE YOUR NEXT STEPS? Incorporate, Form an LLC, or File a DBA (“doing business as”) with CorpNet.com. CorpNet will do all the paperwork needed to start your business online today starting at just $49 plus state fees.
I wish you the best of luck with your new and/or existing business venture and look forward to continuously engaging with you! My warmest regards, Nellie Akalp, Co-Founder & CEO, CorpNet, Incorporated. Corpnet.com (c) Nellie Akalp and CorpNet, Incorporated 2010 - All Rights Reserved About the Author
Currently, Mrs. Akalp is the CEO & Founder of CorpNet, Incorporated, her second legal document filing service company based on the simple philosophy of truth in business and her sincere passion/desire to assist small business owners and entrepreneurs in America get their business off the ground in a fast, reliable, and affordable manner. Mrs. Akalp is responsible for overseeing and managing the daily operations of the business and frequently authors much of the content published at www.CorpNet.com. NO LEGAL ADVICE: CorpNet, Incorporated is NOT A LAW FIRM and cannot provide you with legal advice. In addition, Philip K. Akalp is only licensed to practice law in California. Furthermore, by publishing this article, NO SPECIAL RELATIONSHIP has been created between you and Philip K. Akalp; no attorney-client privilege exists. This document is intended to provide GENERAL INFORMATION ONLY. Before making the decision to Incorporate or Form an LLC, or any other decision regarding your business or its tax liability, please contact a Licensed Attorney or Certified Public Accountant in your jurisdiction. |
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Nellie Akalp graduated magna cum laude from the University of
La Verne, College of Law in 1999 where she obtained her Juris
Doctorate Degree. She also served on the school's Law Review
for three consecutive years. Mrs. Akalp brings significant
experience to the legal document filing industry, having
founded several document filing companies in the past,
including