Why Should I Incorporate?

Why Should I Incorporate?

InCorp is often asked about the benefits of incorporating. While all decisions regarding your business should first be discussed with your personal legal and tax advisers, the experts at InCorp offer the following basic explanation:

Most corporations formed today are small businesses. One of the most cited reasons why companies choose to incorporate are liability protection and tax advantages, which can only be gained by forming a corporate entity.

A corporation is considered a legal person

As such, it is separate from its stockholders, its officers, its directors, and its employees. Should your business be named in a lawsuit,  the claimant(s) cannot attach the assets of the individual shareholder(s). The corporation limits the liability of the individual person who is associated with it to the extent of his actual investment in the company.

If one corporation is good, are two corporations better? Many times, yes. As the litigation explosion heats up, many business people are finding that with two corporations they can separate their risks and minimize their lawsuit exposure.

 

What if I have multiple locations?

If you operate a business with multiple locations, you might want to consider separate corporations and run each location as a unique entity. This has the desirable effect of limiting the potential for loss in any one business to that one location. The other business locations would not be at risk.

Remember, when you form a corporation, LLC or other business entity, you will also more than likely need a Registered Agent. InCorp can help you keep your entity compliant with our superior Registered Agent service and other managed report services as required. Just be certain to ask one of our experts about these services and we will be happy to assist you!

Simply contact us today to get started! How do I begin the incorporation process?