The Benefits of Incorporation
Businesses have everything to gain from choosing to incorporate. After all, incorporation benefits the business by creating a separate legal entity, which allows for owning property and entering into contracts. Moreover, a separate legal entity offers legal protection for the owners’ assets in case of financial ruin.
Advantages of incorporation
Without argument, incorporation protects business owners and their personal assets from the possibility of anything going wrong with their business. If a business fails without the safety net of an incorporation, the owner may lose not only the business but all personal assets as well. Therefore, incorporation offers substantial advantages to business owners.
Personal asset protection for the owners/partners
A simple separation of personal assets and business assets ensures that if the business is threatened by bankruptcy or some other negative action then the owners won’t lose everything.
Customized ownership/equity rights and responsibilities
Once incorporated, the owners hammer out specific rights and responsibilities of not only the owners but also those interacting with the business.
Tax flexibility and advantageous treatment
Furthermore, incorporation allows the business owners to select how they desire to be taxed, potentially helping to reduce the tax burden connected with the business.
Improved professional image
Finally, a business enjoyed an improved professional image along with the incorporation of their business, gaining client trust.
Since incorporation enhances the standing and legal protection of you and your business, contact an incorporation lawyer now to find out how to take your business to the next step.
Incorporation: Options for Business Entities
Today’s business faces many decisions including choosing the best option for a business entity. After all, not every business fits every business entity option. Moreover, a business can be legally structured in several ways when it is incorporated. We’ve included the most common business entities and specific distinctions.
- Limited Liability Company (LLC) – this business entity provides the highest protection to owners along with a flexibility to customize to many types of businesses. A significant disadvantage is that LLCs cannot be publicly traded.
- Corporation (Inc.) – this business entity, although originally the standard for incorporation, involves more paperwork and technicalities in comparison with the LLC without offering any additional protection.
- Non-Profit Corporation – this business entity, although similar in structure to for-profit corporation, forms based on a community, educational, or charitable purpose. Consequently, additional regulations apply, but tax exempt status is a benefit.
- Limited Partnership (LP) – this business entity divides the business owners into two groups: limited partners and a general partner. While the limited partners receive liability protection, the general partner receives no liability protections and retains the majority of control over the business.
- Professional Limited Liability Company (PLLC) – this business entity, almost identical to an LLC structure, is restricted to professional activities only.
- Professional Corporation (PC) – this business entity, similar to corporation structure, is designed for only restricted professional activities.
Cost of incorporation
At KM&A, we offer a free consultation to ensure that you make an informed decision and choose the right business entity for your business. We strive to serve you and your business by offering a fixed fee, including costs and filing fees. Furthermore, the value of incorporation far benefits your business for many days to come.
The business lawyers at Kraemer, Manes & Associates structure your business entity for your business, ensuring that you receive the maximum legal protection and business flexibility that you need. Moreover, we want to help you find the right fit and business entity for your business. Call or email us because we can help navigate you along the path to incorporation.