A sole proprietorship is often “Point A” in the journey of small business ownership. As sole proprietors, the owner and the business are essentially one and the same. However, your venture may be small right now, but we know you have big plans. And one of the ways to support those plans is to consider the benefits of company incorporation.
Whyte & Associates, Inc. of Rancho Cucamonga, California, likes to be on the ground floor of many new ventures. That way, we can set organizations up for success. How you incorporate and structure your business can play an outsized role, either helping or hindering the ability to grow personally or professionally well into the future.
Look, we know you have many decisions to make, especially at the outset of your business. But selecting the right legal structure for your venture is one of the most important decisions you’ll ever make for your business. Consider how sole proprietorships leave no legal separation between the individual/owner and the company. Since this can result in numerous liabilities and complications, you should not avoid incorporation simply because you assume it will be a time-intensive and challenging process.
Structuring your business properly now as a corporation or LLC (Limited Liability Company) saves you a lot of headaches over the longer term and may even end up saving your business and your nest egg in the future. It gives you an edge regarding personal liability, credibility, and tax savings. And by partnering with us, the process is far easier than you may have imagined.
By incorporating, your personal assets are protected. You also get credibility and name protection in return. As a corporation or LLC, it adds validity and simply “looks good” to those lenders and investors who may be considering loaning money or other financial partnerships and arrangements with your business. Likewise, consumers and vendors may prefer doing business with LLCs rather than sole proprietors. There are also tax benefits in both the form of lower tax rates and eligible deductions, credits, and incentives. Altogether, these advantages contribute favorably to the lasting sustainability of your organization.
That’s correct. Incorporation generally builds a wall of protection around owners and shareholders. Your personal assets are kept separate and are essentially bullet-proof from any debts, obligations, or judgments lodged against the company. If a business is founded within a sole proprietor arrangement, the owner’s personal assets are fair game, and that is certainly a big risk.
Changes to managers and owners do not affect the sustainability of operations with corporations and LLCs. The business can still continue to exist. However, a sole proprietorship ends if the owner passes away or leaves. So, corporations are largely viewed as stable business structures that are in it for the long haul.
We have been in it for the long haul, too, and will soon be celebrating 70 years of complete financial and business consulting services. We stand by our experience and expertise, and so do our many clients from across Rancho Cucamonga, CA, and beyond. To learn more about incorporation and other ways to put your new business on the fast track, call (909) 575-0080 to speak with one of our professionals today.
