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• what are the benefits of incorporating a business
• what are the tax advantages of incorporating a business
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• What is a Registered Agent ?
• Frequently asked questions about incorporating
• What are the steps to incorporate a business ?

What are the benefits of incorporating a business

Incorporating your business can provide numerous benefits not available to Sole Proprietors or Partnerships.	Forming a corporation or LLC can be a big step towards your success and the success of your business. There are many benefits of forming a corporation or LLC that are not available to sole proprietors or partnerships:
Protect your Personal Assets
The primary reason businesses incorporate - is to protect the personal assets of it's owners. Incorporation creates a legal entity which shields it's owners from personal liability of business debt - whereas owners of an unincorporated business risk unlimited personal liability. When you incorporate a business - you become an employee of the business. With an unincorporated business - the owner is the business. If an unincorporated business experiences financial difficulties, creditors can take away personal property, such as your home, your retirement savings, or any asset you or your spouse own. Protect yourself, your spouse, and your personals assets. Incorporate your business.	The primary reason many businesses form corporations is to protect their personal assets. Without setting up a legal entity for your business, like a corporation or LLC, your personal liability for business debt is unlimited. This means that should your business experience severe financial difficulties, creditors can take away your personal property such as your home, retirement savings, or any other asset you or your spouse own. Forming a corporation or LLC for your business can protect your personal assets.
Save Money on Taxes
Sole Proprietors are required to pay a self-employment tax... currently around 15.3% of your profits. As an employee of an incorporated business... your self-employment tax is based on the salary you pay yourself... not the profits of the business. With an S-Corporation, the remainder of the profit is not subject to self employment tax. Also, select medical and childcare costs may be deductible with a incorporated business. Sole Proprietors do not receive this benefit.	If you are operating as a sole proprietor, you will be required to pay self-employment tax on your profit, currently at 15.3%. If you set up a corporation for your business, only the salary you pay yourself is subject to self employment tax. With an S-Corporation, the remainder of the profit is not subject to self employment tax, saving you money. Another tax benefit of forming a corporation is that select medical and childcare costs may be deductible, which cannot be deducted as a sole proprietor.
Reduce your Chance of Tax Audit
According to statistics, Sole Proprietors (1040 Schedule C - Profit or Loss from Business) have a higher chance of being audited by the Internal Revenue Service than a business operating as a corporation.	Statistics show that a business operating as a sole proprietor (Schedule C) is more likely to be audited by the Internal Revenue Service than a business operating as a corporation.
Look and Feel Professional
Placing "Inc" or "LLC" after your business name - can make you and your business appear more credible, professional, and trustworthy.	Putting "Inc." or "LLC" after your business name can give you credibility with your customers. Corporations, LLCs, and other legal entities can be a sign of credibility, professionalism, and trust.