The benefits of incorporation are enormous. As a small business owner, you have put a lot of hard work and assets into your business venture. Without incorporating, you are perhaps not realizing the full potential of your business. Here are but a few of the benefits of incorporating your business, a process that can be quick and painless with the help of the right legal team:
Limited Liability. Unless you are incorporated or have registered your company as a limited liability company, you may not realize you are exposing your personal assets to any debts your business may accumulate. The debts can be the result of falling behind on contract payments or a tort suit that you could not anticipate. Either way, incorporating your company will, with the exception of a few very limited instances, protect your personal assets from corporate liabilities.
Easier Access to Capital. As a corporation, you have many tools to raise capital unavailable to other business forms. For example, you can issue stocks in accordance with your articles of incorporation. Showing to investors you are a corporation signals stability, and entices them to invest. In turn, you have easier access to capital than in other business forms.
Stability. A corporation is given a separate entity status from the investors and board of directors. Therefore, no matter what happens to its constituents, the corporation endures and does not cease to exist. This is a feature not available in some business forms.
Special Tax Treatment and Deductions. Business owners in a corporation receive different tax treatment than other business forms. A corporation is able to avoid taxation by filing for Subchapter S tax status. Further, corporations can deduct normal business expenses, saving on taxes at the end of the year.
Incorporation is a major, and beneficial, step in the right direction for your business. It is important to understand the steps necessary to incorporate in Florida. Consulting with the right legal team can help you understand exactly what is needed. Call the Trembly Law Firm at (305) 431-5678 today to schedule a consultation.