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Top 7 Benefits For Incorporating Your Business

By Elizabeth Fenton & Renee Gillombardo

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Starting a new business involves many business decisions. It is of vital importance to make fundamental decisions "right" the first time rather than having to "reorganize" down the road after it has cost you needless money, time and unnecessary frustration. Spend the extra time now exploring the best foundation on which to build your dreams. Consult with experts in the field and consider all options before making any final decisions. Choosing just the right descriptive name, city and state most supportive of your type of business, the colors of your business cards, incorporation, sole proprietorship, limited liability company, etc., all convey an image of your company. Consider the following benefits regarding incorporation.

  1. "Inc." promotes a business image with credibility and prestige.

  2. Corporations typically want to do business or collaborate with other corporations.

  3. Corporations provide owners and directors protection from personal liability. A corporation exists as a separate structure. Shareholders are not personally liable for corporate debt.

  4. Corporations are the most enduring legal entity and do not terminate on the death of the founder, owner or partner.

  5. Corporations offer anonymity to the owners. The concept of the "silent owner or silent partner." If an owner does not want her or his name known, incorporation is a good choice.

  6. Corporations can offer tax-deductible benefits, i.e., health and life insurance, travel and entertainment deductions. Tax options are available by setting up pensions and profit sharing.

  7. Investors are more attracted to investing in corporations and capital is more easily raised through the sale of stock or other equity interests.

Elizabeth Fenton and Renee Gillombardo.
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Source: https://Top7Business.com/?expert=Elizabeth_Fenton_|_Renee_Gillombardo

Article Submitted On: April 10, 2000