| I think it is fair to say that at some point every small | | | | Also, by incorporating your small business it will make it |
| business owner will question whether or not to | | | | more likely that you will be able obtain the financing |
| incorporate. It is very common for a small business to | | | | needed for operating and growing your business. By |
| start out as sole proprietorship or partnership. Down | | | | forming a corporation you are demonstrating to a |
| the line, when the business has grown it then makes | | | | potential lender that you are committed to this venture. |
| sense to become incorporated. So how exactly do | | | | You are highlighting how much it means to you and |
| small business owners go about doing this? The | | | | how much you are willing to do in order to make it a |
| quickest, easiest and least expensive way is to | | | | success. These are qualities that a lender will favor, |
| incorporate online. | | | | and will make them more willing to lend you money. |
| Should you incorporate your business online? There | | | | Another reason why incorporating your business is a |
| are many reasons to consider incorporating your small | | | | good idea is that it can make it easier for you to raise |
| business through and online incorporation service. One | | | | capital and attract investors. The fact is corporations |
| reason is that incorporating limits your personal liability. | | | | have more of an ability to raise money, making it a lot |
| By incorporating your small business it will provide you | | | | easier for you to grow and develop your business. |
| with protection of personal assets such as your | | | | Further, corporations can also raise equity capital, |
| vehicles, home, bank and financial accounts. If your | | | | which is a great advantage because this type of |
| corporation gets into financial trouble and can't repay | | | | capital doesn't have to be repaid and does not acquire |
| debts, your personal assets would be protected. | | | | interest. |
| Generally, an individual shareholder's liability for unpaid | | | | One last point to consider is that incorporating your |
| debts is limited to the amount that they have invested | | | | business can help you establish credibility with |
| in the company. Thus, you cannot lose more than | | | | customers and suppliers. The public is generally more |
| you've invested. Conversely, if you operate your | | | | favorable to businesses that are incorporated. People |
| business as a sole proprietorship, your personal assets | | | | simply feel more secure dealing with a business that |
| could be seized to pay debts associated with your | | | | has an Inc or Corp placed after their name. |
| business. If you are a shareholder in a corporation that | | | | In my opinion the advantages of incorporating your |
| is operated and maintained properly you won't be held | | | | business far outweigh any disadvantages. If you are |
| primarily responsible for the debts of the corporation. In | | | | still unsure then my suggestion is to talk it over with an |
| short, if you don't incorporate your business and it gets | | | | accountant or lawyer and make sure that whatever |
| into financial trouble then it could seriously damage your | | | | you decide it is a well informed decision. |
| personal finances. | | | | |