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.

You've made a decision. Your business needs to incorporate. Many excellent reasons lie behind your decision, not the least of which is the protection of your personal assets. Before you file in your current home state, consider the possibility of a "foreign filing".

No, a foreign filing to incorporate a business doesn't always equate to filing overseas or out of the country. The term is routinely used when an individual, much like yourself, incorporates his business in out of his own state of residence.

Why would you even consider this, you ask? Some states offer corporations more protection and benefits than others. If you don't already live in Wyoming, Nevada or Delaware, you may want to seriously consider filing in one of these three states.

To Incorporate or Not to Incorporate

If you are thinking about incorporating, you are probably overwhelmed by the pros and cons as well as the checklist that seems to be never-ending. Is it worth it? Would it be beneficial to you? What are your options? You've come to the right place for help on learning about incorporating.

I see you're busy planning your new business venture. Congratulations. May I ask you a question? What business structure did you choose?

You say you don't have a structure? You don't need a building yet? Oh, your project is on the web for now…

Yes, you've chosen a fine web site structure, but that's not what I meant. I'm talking about you how you've chosen to organize your business. Your Business Entity.