Thursday, March 20, 2008
If your small business is expanding, you may have thought about incorporating. Incorporating a small business is the smart thing to do when you're ready to take your business to the next level. But, why is incorporating the way to go?
Incorporating provides your business with a few benefits. The main benefit is the limited liability that is provided by incorporating. Not only do you want to shelter yourself, but it's also prudent to shelter your business. When businesses grow the chance for lawsuit or other problems arrive and occur with a better percentage. Incorporating might provide some other benefits. You may be able to write more items off, or lower the self-employment tax. The benefits are obvious.
If you've decided to incorporate, the next step is to choose between the different entity types. This will take some further investigation, but it's relatively straightforward. The choices are often between forming an LLC, an S corporation, or a C corporation. In simplistic terms, an LLC may provide the best entity if you're looking to keep it simple, while a C corporation is the most complicated. An LLC provides the best liability protection; the C corp provides the most complete incorporation. The tradeoff here is that the LLC is easiest to operate, with low costs, and the C corp is most complicated, with the highest costs. Most small business owners choose between an LLC or an S corp when incorporating. The S corp has a few more requirements than the LLC, but offer the best self-employment tax benefits. Though, the LLC is best for real estate businesses. You'll want to take a look at pros and cons before choosing a corporate structure, like an LLC.
Wants you choose an LLC or S, or C corp, the hard work is done. You need to set up your corporation. In the past you were almost certainly forced to go with an attorney when incorporating your small business. Fortunately, you can do it all online these days. By following step by step procedure you can incorporate at much lower costs than previously. Another great advantage of the Internet.
More information on incorporating, forming an LLC, and other financial topics can be found at the website above. The site focuses on personal finance issues and how they effect you. Their latest credit card debt, article goes over the ominous credit card debt issues facing America today. But, more importantly gives you a road map to help you get out of credit card debt, the hard and only way. Feel free to stop by the site today and take a look.
