Incorporating a business

Are you the kind of person who has always wanted to start a business, and are ready to take the leap into entrepreneurship for the first time? Or has a tough job market prompted you to re-evaluate your goals and try to create something new?  Wherever you stand on the spectrum of entrepreneurship, congratulations on deciding to start a business and create new opportunities for yourself and others.

Ready To Start A Business?

If so, you’ve come to the right place. We will tell you what you need to know about how to incorporate a business, how to form an LLC, and how to navigate the complexities of managing the business filings along the way. 

All About Incorporating A Business

When you start a business, many entrepreneurs choose to incorporate as a legal entity. Incorporating a business is a step that goes beyond simply filing a DBA. One of the best ways you can establish your credibility, make your business a legal “entity” beyond your identity as the business owner, and protect your personal assets is to incorporate your business.

Incorporating gives you the ability to protect your personal assets from those of the company, which keeps your personal finances safe from the “worst-case scenarios” of doing business.

There are several options for incorporating your business, including forming an LLC, or incorporating as an S Corporation or C Corporation.  

If you want to incorporate your business, the most popular choices are the LLC (limited liability company), S Corporation and C Corporation. Each of these options has its own unique advantages and complications, depending on your type of business and your overall goals.

No matter which type of incorporation option or business structure you choose, incorporating your business will keep your personal assets safe from lawsuits or judgments against your company.

Depending on your tax filing status and which business structure you choose, there can also be significant tax benefits to incorporating your business; instead of paying self-employment taxes as a sole proprietor, incorporating a business can help change the tax treatment of part of your income, leading to more money in your pocket at the end of the year.

Choosing a entity

If you’re ready to incorporate a business, one of the simplest ways to create a legal entity for your company is to set up an LLC.  The LLC stands for “limited liability company,” and it gives you the ability to create a separate legal entity for your business which is separate from your identity as the owner. Like other corporate structures, the LLC gives you a “corporate shield” when you incorporate a business, to separate and protect your personal assets from those of your business.

About the LLC (Limited Liability Company)

The LLC is a popular choice with small business owners and solo entrepreneurs when it comes time to incorporate a business, because it does not have as many formalities and “red tape” requirements as a C Corporation or S Corporation. The filing requirements are easier, and you don’t have to set up a board of directors, host an annual shareholders’ meeting, or deal with as many other regulatory formalities.