If you are a business owner, even if it is a small business,
you want to be successful. You are undoubtedly aware of the
work it takes to make a business profitable. You might also
be aware of the different tax penalties and other ways that
the government makes it difficult for a small, young business
to make it. You should consider business incorporation. It
is not as complicated as you might think it is, in fact, it
is quite easy to incorporate your business. By doing it, you
will be helping your business to fulfill its potential.
Incorporation is the process of forming a new corporation,
whether it is a business, a new town government, or a not-for-profit
organization. As a business owner it is easy for you to take
advantage of the many benefits that incorporation has to offer. There are several legal advantages to going
through the process of business incorporation. For starters,
your personal property and possessions will be protected from
creditors and lawsuits. Any officers in your corporation (including
you) are only responsible for the amount of money that they
invest into the corporation. And if you are going through
some kind of personal litigation, your corporate assets are
secured, other than your personal shares in the organization.
Another plus in business incorporation is that your ownership
in the corporation can be transferred to other parties without
difficulty, sometimes with little or no paperwork required.
Also, your corporation will be taxed at a lower rate than individuals. There is no cutoff point on the loss amount that
can be carried into succeeding tax years, either. Further,
corporations earn and maintain their own credit ratings separate
from the owner, no matter what the owner's personal credit rating might be. Business incorporation is a really
good way to not only protect the organization, but to protect
the business owner as well.
Yet another advantage to business incorporation is that it
is easier to set up retirement plans. In addition, the owner's
health insurance premiums are fully deductible, which is a
huge bonus. And no matter if the owner or some other officer
in the corporation passes away, the corporation continues
on forever.
The basic steps in business incorporation are fairly straightforward.
Every state is going to have different requirements and applicable
laws, so make sure to check before getting started with the
process. The first thing you do when incorporating is to file
a charter. Check with your state's (or the state that you
wish to incorporate in) Secretary of State office for guidelines
and appropriate forms to complete. The next step is to choose
a name for your new corporation. You should make sure to check trademark registers to avoid duplication
and problems later on. Next, you need to complete the corporation's
bylaws. These are important because they set forth the particulars
regarding annual shareholder meetings and voting procedures.
You will also need to report annually on your corporation. This can be done at an annual meeting, and any
business that is discussed and voted upon is documented.
Business incorporation can be the answer to making the most
of your organization. Taking advantage of the tax benefits
alone can help save - and make - you money. And depending
on which state you incorporate in, you might have to deal
with little or no paperwork and red tape, and even fewer tax
issues. Business incorporation is a great way to turn your
little business into a legitimate organization, and it is
not nearly as complicated as it might sound to you.
Mark is a director of 3 Internet Companies, is
a published author and has written many articles on a widespread
number of topics. All his articles may be reproduced provided
that an active link is included to
http://www.llc-incorporation.info
