When asked if incorporating your business is the right decision to make, there are many things to consider.  There are several benefits that can be obtained by forming an incorporation or LLC.  Eventually, your business will grow to the point where this change may be necessary.  Here are some of the benefits of incorporation:

Personal Asset Protection - The business owner is able to separate and protect their personal assets in case of a lawsuit or claims against the business entity.  Owners also should have limited liability for outstanding business debts and obligations.

Tax Flexibility - Profits and losses "pass-through" an LLC and get reported on the owners personal income tax returns.  The business owner also has the option to elect to be taxed as a corporation.  A corporation can elect subchapter S tax status and avoid double taxation of corporate profit and dividends.

Enhanced Credibility - Everyone wants to have status.  Being able to add an "Inc." or "LLC" after your business name affords your business with the instant credibility and authority associated with owning an incorporated company.

Brand Protection - By incorporating your business you are are protecting your company's reputation from being diminished or confused with another company bearing a similar name.

Leaving a Legacy - Corporations & LLCs continue to exist throughout ownership or management changes within your business.

Deductible Expenses - Corporations and LLCs may deduct normal business expenses, including salaries before they allocate income to owners.  The money you put towards growing your business can be deducted from your business income in determining your actual taxable income.

Should you have any questions regarding incorporating your business please contact us or register to attend our upcoming Corporate Seminar on September 16, 2015.