Whether you form a LLC, S-Corp or C-Corp, incorporating your small business is beneficial to you on many levels.

First of all, incorporating helps protect your personal assets. Both LLCS and corporations allow owners to separate and protect their personal assets. A properly-structured corporation should allow owners minimal liability for business debts and obligations. This means that you won’t lose your personal home, savings or other assets due to a business liability.

Incorporating also helps a business outlive the business owners, meaning even if ownership or management changes, the business continues to exist.

On a very basic level, incorporating your business adds a level of credibility that doesn’t exist without the incorporation. It adds an element of legitimacy and authority. It also helps you protect your business name, allow you to build your brand. You wouldn’t want to invest in building your brand and later find out another business has laid claim to the name. Changing it at that point could have serious implications for your business Some businesses will not consider contracts of business with those who are not incorporated, therefore it allows you to compete for business contracts on another level.

Incorporating also allows for some tax flexibility depending on the structure. An LLC is taxed the same as a sole proprietorship, but allows for limited personal liability. The profit and loss in an LLC is usually reported on personal income tax return.

While a corporation is taxed on both the individual and corporate levels, you can avoid double taxation or corporate profits and dividends if properly set up in the way to do that.

After incorporating, you can establish credit in your company’s name and invest in your company’s future. Setting up separate financial accounts helps you better account for your company’s expenses and profits and plan for what is to come.

If you think you may want to incorporate your small business, contact one of our reputable small business attorneys who can assist you in the process. Call today for your initial consultation.