There are a variety of different types of incorporations for you to consider for your business. You will need to focus on the needs of your business if you want to make the right choice. In the beginning, a sole proprietorship may be a good way to do business, but in the future with expansion, incorporation may be necessary.
First of all, you will want to consider the benefits of incorporating your business. Here are a few of these benefits:
- It offers a separate legal status for the business and the individual.
- Shareholders of the business are not responsible for the debts or other liabilities.
- Business taxes are lower because they are separate from the individual taxes.
- Easier to access capital funding because financial institutions are more likely to trust the business.
- The business has a continuous existence.
- The name is protected across the country.
Another thing to consider is the cost of the incorporation. These fees are going to vary depending on where you choose to incorporate your business. There may also be other fees assessed in order to file required reports annually. Make sure that you make your business incorporation decisions wisely.