Reasons to consider company incorporation

reasons to consider company incorporation

Whether you are just getting started or have been in business for several years, incorporation may be something on your mind. We are happy to provide face to face assistance to business owners considering incorporation. There are several benefits to incorporating or forming an LLC, some of which include:

  1. Protection of personal assets. The formation of a corporation or LLC allows you to keep your personal assets away from those associated with your business. One of the primary benefits of company incorporation, the protection of assets is essential due to the nature of our litigious society. Should a claim or lawsuit be filed against your business, your general financial wellbeing is guarded.
  2. Credibility. When a company name is followed by “LLC” or “Inc.,” there is an increased perception of credibility. Often, there is an unrealized preference amongst customers and even vendors to associate and do business with an incorporated organization.
  3. Tax benefits. Incorporating gives you the opportunity to separate business profits and losses from your personal taxes and take advantages of tax credits and deductions you may otherwise not be eligible for.
  4. Deduction of expenses. Normal business expenses such as employee salaries may be deducted from business income by the corporation or LLC prior to estimating taxable income, thus allowing more monies to be contributed to business growth.
  5. Continuity. Should ownership change in the LLC or corporation, the existence of the company will not be threatened. If ownership changes in a partnership or sole proprietorship, the same does not hold true. Simply put, incorporating better ensures the legacy of your business.
  6. Brand protection. Your company branding is important to your reputation and, therefore, your long-term success. In most states, incorporating prevents another business from operating under the same name as your corporation or LLC.

Whyte & Associates has helped numerous entrepreneurs incorporate their businesses. We understand the importance of information and guidance in the development of a solid foundation for your business. Our staff has extensive familiarity with the various forms of corporations, including LLC, S-Corp, and C-Corp. We are happy to meet with you to discuss the advantages and disadvantages of this action. Call (909) 575-0080 today.