| Incorporating is the standard for many in business | | | | and not be required to file or record the transfer. |
| today because of the level of protection it provides in | | | | Another factor that makes incorporating a good |
| protecting your personal assets against the claims of | | | | decision is taxation. In the United States, corporations |
| creditors and lawsuits. | | | | are taxed at a lower rate than individuals. In addition to |
| Starting a corporation involves filing the Articles of | | | | the lower tax rates there are no limits on the amount |
| Incorporation (also called a Charter, Certificate of | | | | of losses a corporation may carry forward to |
| Incorporation), listing the purpose of the corporation, its | | | | subsequent tax years. |
| principal place of business and the number and type of | | | | Also corporations have the ability to raise funds |
| shares of stock. | | | | through the sale of its own stock. You can raise capital |
| It's important to carefully consider the type of business | | | | from investors for your corporation easily through the |
| entity that is right for you. You may feel an LLC is | | | | sale of your stock. This can be crucial for expanding |
| more suitable for you because it is often a more | | | | and developing a business. |
| flexible form of ownership, especially suitable for | | | | Forming a corporation can also mean durability. Its |
| smaller companies with a limited number of owners. | | | | existence is not affected by the death or absence of |
| Yet there are important legal benefits to incorporating | | | | shareholders, directors, or officers of the corporation. In |
| your business. The primary benefit is the safeguarding | | | | essence your corporation can exist indefinitely. |
| of personal assets against the claims of creditors and | | | | A corporation also has the ability to establish its own |
| lawsuits. Individual proprietors and general partners are | | | | credit rating. Regardless of an owner's personal credit |
| personally and jointly responsible for all the liabilities of a | | | | scores, corporations acquire their own credit rating, and |
| business such as loans, accounts payable and legal | | | | build a separate credit history by applying for and using |
| judgments. | | | | corporate credit. |
| In a corporation, however, stockholders, directors and | | | | Incorporating can be accomplished easily today in a |
| officers typically are not liable for their company's | | | | number of ways. There are online resources where |
| debts and obligations. If one is personally involved in a | | | | you can download incorporation forms or have a legal |
| lawsuit or bankruptcy, assets such as boats, cars and | | | | service complete the application process for you. |
| houses may be protected. | | | | Ultimately you need to determine what your business |
| You can also easily transfer ownership of a business | | | | goals are and decide if forming a corporation will work |
| to someone else, either in whole or in part depending | | | | for you. Incorporating today has become a crucial step |
| on the state. For instance, a person with a Delaware | | | | for many new business owners seeking to protect |
| Corporation can transfer ownership of a corporation | | | | themselves and their business. |