Forming a new business is an exciting time, and whether you set up your business as a corporation initially or incorporate it after it gets going, it is wise to have a business law professional assist you. Not only will you get advice about why this is a beneficial way to go, but it can also be handled properly so nothing falls through the cracks that could leave you with issues down the road and perhaps not able to take advantage of some of the benefits. Here is why you should incorporate your business.
- Protect Personal Assets- Incorporating your business with the help of a business law professional safeguards your personal assets in the event you are sued due to something related to the business. Without incorporation, your home, vehicle, retirement savings, and other personal assets are fair game if you lose a case.
- Eligible for Funding- When you need additional capital as a sole proprietor, lenders will look at your personal ability to pay and any loans will be a part of your personal financial portfolio. When you incorporate, you can raise funding in more ways than you could otherwise, including private investments, accepting donations, and selling stock in your company.
- Image of Legitimacy- Customers will often go with a corporation over a sole proprietorship because it has the image of success and legitimacy. Your business will be taken more seriously.
- Potential Tax Savings- You should discuss taxes with your certified public accountant or business law professional to determine if incorporation results in lower tax liability. It is often the case depending on the entity type.
- Required- If you plan to work with the government or some other organizations, you may need to be incorporated to be considered.
If you are interested in business law services for business formation, give us a call at Jones, Childers, Donaldson & Webb, PLLC. We will be happy to schedule a consultation to discuss whether becoming incorporated makes sense for your company and answer any questions you may have. We can also assist you with other business law situations, including mergers and acquisitions, employment law, litigation, and contract negotiations. Call today to learn more.