6 Reasons How Getting Incorporated Can Help You
It’s not just about running your business, it is about running your business right. Business is risky, but you can reduce the risks by incorporating. For example, it doesn’t matter if you work out of your house, buy investment property, start a restaurant, retail store or construction company, take on a profession or provide consulting services. Remember, a properly structured corporation provides a shield between your personal assets and the activities of the business.
One advantage of structuring a corporation correctly is the increased tax benefits associated with being incorporated. By law, corporations are entitled to many tax deductions that are not available to individuals, sole proprietorships or partnerships. Those tax benefits could save you thousands of dollars annually. A properly structured corporation can protect your personal assets, reduce your taxes and provide a universe of pre-taxed “fringe benefits” such as retirement plans, deferred compensation, annuities, life insurance and medical reimbursement plans.
California has no requirement that the names of shareholders (owners) be filed with the State. California requires only 1 person to be a Shareholder (owner), Director, President, Secretary, and Treasurer. Corporations can provide privacy, anonymity and secrecy not available to sole proprietorships or partnerships.
Credit and Capital
Over time, it may be possible that your corporation could carry its own credit rating, making it possible for your corporation to raise capital and secure credit with financial institutions, and better rates with your business partners. To enhance your chances of obtaining a higher business credit rating, separate your personal credit from your business credit. This means that you want your business to be structured as a corporation or an LLC, NOT as a sole proprietorship or partnership where you and your business are one in the same. It is best to separate business and personal credit as soon as possible. It’s also important to do most of your business with companies that will report to the major credit reporting agencies. (Source: Dunn & Bradstreet, Business Credit Reporting Agency)
The benefits of incorporating aren’t just for big business; they’re for SMART BUSINESSES. Incorporating allows small, even a one-person business to experience the full benefits corporations provide.
When you do business showing an “INC” or “LLC” behind the company name it provides a level of credibility. It shows you are substantial and no one knows how big your organization is. It could be just you, or a 100 people in your company.
| In California ONE person can form and operate a Corporation or LLC
Your New or Existing Business
WHEN YOU CALL You’ll talk with me regarding your corporation . From the comfort of your home or office you’ll speak only with me, an attorney since 1974. The complete attorney fees are always $499 . You’ll never have any surprises and I’ll never waste your time. I’m available to answer your questions even after you receive your corporation. There is never a charge for questions before or after incorporation. It’s part of the service.