The Benefits of Becoming Incorporated
There are several choices to make when it comes to your business structure.
If you are self-employed, you business structure is likely a sole-proprietorship.
If there is more than one owner, you may decide to have a partnership.
Another choice becoming quite popular is having a Limited Liability Company (LLC).
Yet another is a corporation.
An important thing to realize is that you are the one who needs to make the decision as to which business structure is right for you and for your small business.
The first question I want to ask is, "How important is the name of your business?" If the name of your business is something you want to protect and want to keep others from using (or a name similar to it), you may want to incorporate your business.
This allows you, and you alone, to use the name in the State you are registered in.
Obviously this is a great benefit when choosing a corporation as your business structure.
But a corporation isn't the only choice that can protect your name.
Other questions need to be asked.
The second question is, "Do you want (or need) to protect yourself and your personal assets from what might go wrong in your business?" A corporation, if it is set up right and is operated strictly according to state law and the organizing documents (i.
e.
: the Articles of Incorporation; By-laws; meeting of the incorporators, shareholders, and directors), is designed to create a legal wall of separation (corporate veil) between you and what happens in your business.
A corporation, however, isn't the only business structure that can protect you from something going bad in your business.
My third question is, "Do you want to save money on taxes?" This may be a no-brainer, but many people don't know you can actually have some degree of control over your tax liability by what kind of business structure you have.
A corporation can save you money.
Tax evasion is illegal, but tax avoidance is what keeps the tax professionals in business.
Even though an L.
L.
C.
can be structured to do what a corporation does and have the same tax treatment, I recommend to most of my clients they should incorporate their small business.
Making the decision whether or not to incorporate your small business is a very important one to consider.
Your business structure is a critical choice to be made intelligently.
Becoming incorporated has real benefits for those who know what they are doing.
Incorporating a small business does not have to cost an arm and a leg.
If you need an attorney or a C.
P.
A.
, then by all means find the best.
But incorporating a business is not rocket science.
My experience with helping hundreds of small businesses incorporate in Oklahoma has taught me many lessons.
Incorporating has many benefits, two of what I believe to be the most important are reduced taxation and reduced legal liability.
I don't want to pay any more taxes than I have to, and if something goes bad with my business, I want legal separation between it and my personal assets.
Incorporating in Oklahoma can do that.
Incorporating really does have its benefits.
If you are self-employed, you business structure is likely a sole-proprietorship.
If there is more than one owner, you may decide to have a partnership.
Another choice becoming quite popular is having a Limited Liability Company (LLC).
Yet another is a corporation.
An important thing to realize is that you are the one who needs to make the decision as to which business structure is right for you and for your small business.
The first question I want to ask is, "How important is the name of your business?" If the name of your business is something you want to protect and want to keep others from using (or a name similar to it), you may want to incorporate your business.
This allows you, and you alone, to use the name in the State you are registered in.
Obviously this is a great benefit when choosing a corporation as your business structure.
But a corporation isn't the only choice that can protect your name.
Other questions need to be asked.
The second question is, "Do you want (or need) to protect yourself and your personal assets from what might go wrong in your business?" A corporation, if it is set up right and is operated strictly according to state law and the organizing documents (i.
e.
: the Articles of Incorporation; By-laws; meeting of the incorporators, shareholders, and directors), is designed to create a legal wall of separation (corporate veil) between you and what happens in your business.
A corporation, however, isn't the only business structure that can protect you from something going bad in your business.
My third question is, "Do you want to save money on taxes?" This may be a no-brainer, but many people don't know you can actually have some degree of control over your tax liability by what kind of business structure you have.
A corporation can save you money.
Tax evasion is illegal, but tax avoidance is what keeps the tax professionals in business.
Even though an L.
L.
C.
can be structured to do what a corporation does and have the same tax treatment, I recommend to most of my clients they should incorporate their small business.
Making the decision whether or not to incorporate your small business is a very important one to consider.
Your business structure is a critical choice to be made intelligently.
Becoming incorporated has real benefits for those who know what they are doing.
Incorporating a small business does not have to cost an arm and a leg.
If you need an attorney or a C.
P.
A.
, then by all means find the best.
But incorporating a business is not rocket science.
My experience with helping hundreds of small businesses incorporate in Oklahoma has taught me many lessons.
Incorporating has many benefits, two of what I believe to be the most important are reduced taxation and reduced legal liability.
I don't want to pay any more taxes than I have to, and if something goes bad with my business, I want legal separation between it and my personal assets.
Incorporating in Oklahoma can do that.
Incorporating really does have its benefits.
