Many small businesses consider themselves ‘too small’ to worry about incorporation. However, if you’re a self-employed social media consultant or a landscaper, incorporating or forming an LLC (Limited Liability Company) can be a smart idea. Here’s why:
- Liability protection: First and foremost, the LLC and the Corporation (C Corporation or S Corporation) protect the owner’s personal assets from any liability of the company. That is, if your company happens to be sued, your personal assets (i.e. property, savings accounts) are shielded from any judgment. Of course, lawsuits are worst-case scenarios and there’s a slim chance you’ll ever run into legal problems. However, if you’re sued as a sole proprietor, you’ll be sued personally. And that means everything – from your children’s college fund to your retirement savings – is at risk. Also keep in mind that creditor judgments can last up to 22 years, so you need to worry not only about protecting the assets you have today, but the assets you’ll have tomorrow.
- Taxes: Federal income tax rates can be lower for corporations than for individuals. And as a corporation, you may be entitled to additional deductions.
- Credibility: Adding ‘LLC’ or ‘Inc.’ after your company name boosts your credibility in the eyes of some customers and partners.
- Business credit/capital: As a corporation or LLC, it can be easier for you to access a line of business credit. And forming a C Corporation will be essential if you plan to seek Venture Capital funding.
- Added layer of privacy: With an LLC or a corporation, the company’s ‘registered agent’ goes on public record, and not your home or business address (in most cases).
Fortunately, the incorporation process has been greatly simplified these days, so there’s simply no reason to delay incorporating your business or forming an LLC.
Question: So how do you even go about filing all the necessary paperwork and making sure that you’ve done it all correctly?
Answer: With a reputable business formation filing service such as CorpNet.com .
Our professional staff has the knowledge and expertise to help you every step of the way. From choosing a business structure to reserving a name to filing with the Secretary of State, CorpNet.com can make the filing process quick and painless.
It is possible to handle all of your business filings yourself. It will require doing lots of research to be sure you’re filing the correct documents, completing all of the forms, paying individual fees, and quite possibly hiring an attorney to advise you. With CorpNet.com, you have a one-stop destination for all of your business filings. Everything can be handled at once, and all for an extremely reasonable fee.
CorpNet.com can help right from the beginning, with a Starting a Business Checklist that lists everything you need to know in order to get your company up and running. Our Free Corporate Name Search lets you be sure that the name you’ve chosen for your company is available, and we can help you to reserve the name for your own use. CorpNet.com’s Free Incorporation Guide or Free LLC Guide to get all the details about the distinctions between the two structures. You’ll learn that overall, an LLC is the less formal entity. Of course, details may vary based on your specific circumstances, so take some time to educate yourself on these two business structures.
Let CorpNet.com apply for your Employer Identification Number (also known as a Federal Tax ID Number), the first step in incorporating your business. If you aren’t sure whether you need a business license, CorpNet will advise you, and file the application for you.
Once your business is incorporated, CorpNet.com can continue to provide valuable services. If you make any changes to your corporate structure, our staff can file the appropriate Articles of Amendment. Take the worry out of filing your annual report with our service.
CorpNet.com can provide filing services in all 50 states. Our staff is professional, courteous and reliable, and all services are fully guaranteed.
Contact CorpNet.com today, and cross all of those business filings right off your list.
We look forward to incorporating your business for you and getting your business off the ground!
A portion of this original content by Nellie Akalp was written and published on BusinessWeek.