What is incorporation?
Incorporation is the forming of a new corporation. This doesn’t necessarily mean starting a new business. You can incorporate your existing business and continue operations as usual.
Why should I incorporate?
- Protection of your personal assets from others.
- Get tax benefits not available to individuals.
- Can transfer or share ownership of the company.
- Raise investment funds needed for your company.
- Have the company exist beyond your death.
Should I incorporate my business?
The best reason to incorporate is to protect yourself. If your business sells services or goods, you should incorporate to protect yourself from malpractice or defects. Even if you are not primarily responsible for the defective services or goods, you can still be sued.
The bottom line is: if there is a possibility that your business can be sued for any reason, you should incorporate to protect your personal assets.
What type of corporation should I choose?
Depending on your needs you can incorporate as a C or S-Corporation, Non-Profit LLC, LLP, General Partnership or Limited Partnership. You should consult a lawyer before deciding on which structure is right for your business.
Where should I incorporate?
You can incorporate your business in any state. Most businesses incorporate in its principal place of business. Each state has different laws regarding incorporation and some states are more business-friendly than others. Consult with a lawyer before proceeding to incorporate in any state.
How much does it cost?
Costs vary by state. Most government costs are minimal and less than a few hundred dollars. The cost of incorporating is greatly outweighed by its benefits.
Do I need a lawyer?
Yes. Most people believe that they can incorporate their own business. This may be true for some business owners, but not most. Why? The reason is simple. When you have an experienced attorney incorporate your business, you save valuable time and money. You also know your personal assets are protected and you gain valuable advice along the way. Failure to incorporate and file paperwork in a correct and timely matter may subject your personal assets to liability. Make sure you incorporate right the first time.
How do I begin?
Call us to speak with one of our attorneys. We have incorporated countless businesses in all industries. We can help you choose the right corporate structure for your specific business needs.