Starting a small business is a dream come true for many. With hard work, the right skills, and some good ideas, many people successfully start enterprises each year. When setting up a company, it’s crucial to consider what type of business to form. Many people will find that a corporation best serves their needs, although it’s wise to consider all your options.
Contact Whyte & Associates, Inc. to discuss tax benefits, the setup process, and more if you’re looking for corporation services in La Verne, California, or nearby.
A corporation is considered its legal entity. This means that the company itself is different and distinct from the owners. That said, many corporations, especially smaller ones, are owned by families and individuals.
So why bother setting up a corporation rather than a sole proprietorship or another entity? Crucially, corporations can take out loans in their own name as a separate legal entity, meaning the company is liable for the debt rather than the business owners. Further, if a corporation is sued, liability is often limited to the company, not the owners.
Of course, authorities will take measures to ensure that people don’t abuse corporations and their separate legal status. Regardless, corporations can mitigate risks in many situations. Corporations also make it relatively easy to divide up ownership. If you start a business with a partner, you could take 50 percent of the shares, and the partner could take the other 50 percent.
The steps to setting up a corporation can vary based on jurisdiction. Setting up a law firm in California differs from setting one up in Toronto. You’ll have to file paperwork and may need to appoint a Board of Directors and draw up articles of incorporation. Corporations also offer various tax benefits and may cut down your tax bill.
Going forward, corporations often have requirements for reporting, documentation, Board of Director meetings, disclosures, and other similar things. It’s wise to speak with professionals to ensure that everything is being handled properly.
In summary, a corporation offers:
If you’re looking for nearby incorporation services, contact Whyte & Associates, Inc, serving La Verne, California. We can discuss the setup process, tax benefits, and more. Call (909) 575-0080 to schedule an appointment.