by LawInc Staff
January 5, 2023
Thinking about forming a corporation or LLC for your business, but are not sure if it’s worth the extra effort?
If so, consider the following:
Personal Asset Protection
One of the greatest advantages of creating a corporation or LLC is the shield it offers you from lawsuits.
If your corporation or LLC is sued or incurs debt, your personal assets (like your home, car and savings) are shielded from creditors.
Depending on the type of LLC or corporation you decide to form, you may be eligible for helpful tax benefits.
For example, S corporations and LLCs taxed as S corporations have the ability to save you a lot of money on self-employment taxes.
Thinking of bringing on investors or adding other owners to your business? Corporations and LLCs are great vehicles for attracting others to participate with you in your business venture.
Incorporation or forming an LLC shows that you take your business seriously, want to protect yourself, and handle your business the right way.
Starting a corporation or LLC for your business can provide credibility and motivate others to trust and do business with you.
Unlike a sole proprietorship or partnership, a corporation or LLC can last forever.
For example, if you leave the business or pass away, the business can continue uninterrupted and can be passed on to other family members or investors.
If you need help setting up a corporation or LLC, LawInc is here to help.