| If you're a business owner with a sole proprietorship, | | | | business owner want to get up and dance. |
| you might be wondering whether it's time to | | | | Limited liability is another great advantage to |
| incorporate your business. Lots of sole proprietors | | | | incorporating your business. Sole proprietors run the |
| crave adding the coveted title of 'corporation' to their | | | | risk of losing everything should someone decide to sue |
| business, but few understand the advantages and | | | | their business. Sole proprietors' personal assets are fair |
| protection they can enjoy from incorporating their | | | | game in a legal battle regarding their business, and |
| business. | | | | such an incident could leave the business owner with |
| When you form a legal entity for your business, | | | | nothing. Corporations arm business owners with limited |
| sometimes in the form of a corporation, you're taking | | | | liability and they are only at risk to lose the amount of |
| your business to the next level. Not only are you | | | | equity they invested in the corporation. In the event of |
| showing the world that you're a serious business | | | | a legal battle, the business owner's personal assets |
| person, you're showing them that you are here to stay. | | | | are off limits as the corporation acts as a stand-alone |
| And stability in a challenging economy is just what | | | | entity. |
| everyone is looking for. | | | | An incorporated business also gives you more |
| There are several different legal entity options and it's | | | | credibility among clients, peers, and lenders. Banks and |
| a good idea to do some research, or even consult a | | | | organizations are much more likely to back you in |
| professional, to determine which one is right for your | | | | terms of funding or loans if you're incorporated. And |
| business. In the case of a corporation, your business | | | | with banks tightening their belts, business owners need |
| becomes a federally recognized corporation firm. You | | | | all the help they can get when it comes to capital, |
| can have shareholders and for many business owners, | | | | financing, and lending. Incorporating your business can |
| this means big time business. | | | | give you that extra boost you're looking for. |
| For many business owners, the tax benefits | | | | So just how do you get your hands on all of these |
| associated with incorporating your business are the | | | | great advantages of a corporation? Incorporating your |
| biggest attraction. When you remain a sole proprietor, | | | | business is easier than you would think. Incorporating |
| you're subject to what's referred to as 'double | | | | used to take months, even years. Now, with the help |
| taxation.' Most people aren't too jazzed about being | | | | of incorporation services, your business can become a |
| taxed once, much less twice. There's actually a special | | | | corporation faster and easier than ever. You can be |
| tax just for business owners called Self Employment | | | | on your way to running a serious corporation in this |
| tax and sole proprietors are required to pay Federal | | | | seriously tough economy before you know it. |
| tax rate as well as the Self Employment tax. An | | | | Disclaimer: This article is for informational and |
| incorporated business is eligible for certain tax breaks | | | | entertainment purposes only, and should not be |
| and advantages that are enough to make any | | | | construed as legal advice on any subject matter. |