Do you own a small business and aren’t sure if you should incorporate? The decision can be tough to make, especially if you enjoy being one and the same with your company. However, changing from a small entity to a Limited Liability Company (LLC) or corporation with the help of Incorporation Lawyers can open the door to many new opportunities. Probably the most important factor is that an LLC or corporation protects your personal assets.
If you’re unsure of whether or not to incorporate your small business, it’s best to meet with a team of experienced incorporation lawyers such as Susan Pinkston. During your consultation, the following four benefits will be discussed-
- Protect Personal Assets
Corporations and LLCs let business owners separate their personal assets. This offers greater protection if there were a legal judgment filed against you or debts looking to be collected. Essentially, you can run a successful establishment without having to risk your home, vehicles, savings, or other types of personal property.
- Add Trust and Credibility
Consumers, vendors, and partners prefer to do business with companies that are incorporated. Having “LLC” or “Inc.” after your name is an effective way to add trust and authority. Plus, many states won’t allow other businesses to use your name in an entity or trade name. It’s reassuring to know that you have some protection for your company title.
- Guarantee Continued Existence
As a sole proprietor, your organization will end if anything happens to you. Incorporated businesses and LLCs work differently. They continue to exist even if there are changes to management or ownership. If you plan on having your brand continue long after you are around, changing to a corporation or an LLC is a smart move. Plus, you gain anonymity, so your involvement doesn’t have to be public knowledge.
- Enjoy Tax Flexibility and Deductions
Even the smallest companies can miss out on huge tax breaks if they don’t incorporate. In fact, these breaks can add up to hundreds or thousands of dollars each year that can be put back into your business. You may be eligible for the following tax deductions:
- Medical insurance
- Travel expenses
- Daily business expenses
- Items used for business purposes, such as vehicles
- Social security tax deduction
- Deduct losses from income tax
Not every small company needs to incorporate or form an LLC, but there are significant advantages to consider. If you have questions about the process or are ready to move forward with incorporation lawyers, call Susan G. Pinkston today.