If you recently started a business or currently own your own business, you may be asking yourself, “Should I Incorporate?” This is a question most business owners have at one time or another. There are many reasons someone may choose not to incorporate, but a lot of the time they make the decision because they don’t understand the process or the benefits incorporating can do for a business. A lot of business owners also believe that it’s an expensive and lengthy process, however this isn’t always true.
The question should I incorporate comes up a lot for new business owners, but also for seasoned business owners looking to take the next steps. One thing most people don’t know is that you can incorporate even if you are the owner and only employee of your company. There are also numerous benefits that can save you money. As long as you are conducting business as an individual, you are missing out on these benefits. You could be saving a lot of money just on taxes alone. Corporations are taxed at a lower rate than individuals, but it also gives you the option to write off things like your medical insurance premiums.
While it does cost money to incorporate, it’s not nearly as expensive as you might think. It can also be a very quick process. A lot of people use lawyers to help them incorporate, but you can save money on your lawyer fees if you incorporate your business online. Using the Internet to file the proper paperwork also saves a lot of time. You can do this process yourself by visiting your state’s website but this has become a nightmare for many business owners. Most prefer to use an online service to make sure that it is done right and efficiently.
People are also more likely to do business with a corporation. Your customers or clients want to know that they are dealing with a professional and stable business. Being incorporated gives you a lot of credibility. Even if you are a small company, that may be operating out of your home incorporating may give you an edge over someone who conducts business as an individual. Should I incorporate is a common question, but a lot of the time the benefits outweigh whatever it is that’s holding you back.