Incorporating your business is one of the best ways to protect your assets and limiting your liability by separating your personal from your business identity. This is reason that many entrepreneurs choose to incorporate, but it's not the only one.

1.) Business name protection - In many states, other businesses cannot incorporate the same name as yours (in the same state).

2.) Credibility - Many lenders and consumers prefer doing business with a business that's incorporated.

3.) Tax breaks and flexibility - Corporations can avoid double taxation of corporate profits and dividends by electing Subchapter S tax status.

4.) Perpetual existence - Corporations continue to exist, even if ownership or management changes. Sole proprietorships and partnerships just end if an owner dies or leaves the business.

5.) Deductible expenses - Corporations may deduct normal business expenses, like salaries, before they allocate income to owners.

6.) Access to loans - Most lenders and investors prefer to lend to corporations as they tend to be more stable and focused.
Incorporating isn't right for everyone, so choose based on the needs and goals of you and your business.