There are a number of compelling reasons why you would want to incorporate your business. Once your business grows beyond a certain point, you almost cannot afford not to be incorporated. You may even want to consider incorporating at the very beginning to prepare for your future growth.
Why You Should Consider Incorporation Sooner Rather than Later
One of the more important benefits of incorporation is personal protection from liability. If you run into financial difficulties or incur other liability, you could be at risk without incorporation, putting your own assets at risk. Incorporation puts a separation between you and the company, and it makes the company its own separate legal entity.
Incorporation can also help when you are seeking capital for your business. Investors and lenders are looking at your corporate infrastructure when deciding if you are worth the risk. They are far more likely to lend money to an entity than a person because there is more credibility and perceived stability. Customers may also see incorporation as a sign of your business’s viability.
Finally, there could also be tax benefits from incorporating your business. If you choose the proper business entity, you can save money on your tax bill, eliminating the double taxation of income that could otherwise occur. You would not need to pay self-employment taxes when you have an incorporated business if you pay yourself in dividends.
When you are choosing to incorporate, it is vital to choose the right business form. An experienced business attorney would advise you on the proper type of incorporation and would explain your options in detail.
Contact a Marietta Business Attorney for Assistance
Battleson Law LLC is a trusted adviser for Atlanta-area entrepreneurs and businesspersons, providing timely and commonsense counsel. Call our Marietta business lawyers today at 470.398.0720 or contact us online to learn more about how we can help your business.