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Return To Incorporation Article Archive   Search the Article Archives 5 Compelling Reasons to Incorporate Your Business By Sahara S. Many business owners do not realize the overwhelming advantages of incorporating a successful business enterprise. Incorporating a business is key to protecting one's assets, ensuring the continuity of one's business after death, lowering your taxes, attracting investors, and creating an impression of legitimacy and credibility for one's business. Without the shield of incorporation law, a business could easily fall apart due to unforeseen circumstances, such as lawsuits, accident or death of owner, mounting business expenses, lack of capital, or competition from incorporated businesses that have the legal, financial, and professional edges afforded by incorporation. 1. Protect Owners Personal Assets In order to protect their personal assets, a business owner must incorporate his or her business in order to create separate personal and business identities. Without separate identities, a business owners personal assets - such as a house, car, or other material possessions - are fully exposed to any malpractice claims that are incurred by operating their business. However, when a business owner incorporates and observes corporate formalities, legitimate claims against the business can only be satisfied through the assets of business. In this way, incorporation law provides 'a veil' of legal protection for the owners personal assets. 2. Ensure Continuity of Business Another distinct advantage of incorporation that stems from the creation of separate identities is to ensure the continuity or perpetuity of ones business. If a business owner suddenly becomes disabled or dies, the business remains unaffected as a separate legal entity and can be run by another partner or passed down from generation to generation without disruption or termination. 3. Lower Tax Rate Incorporated businesses are also taxed at a much lower rate than individuals. This provides substantial savings for a business owner. In addition, any qualifying expenses - such as insurance, travel and entertainment - are tax deductible as 'business expenses' so long as they are related to the operation of the business. 4. Easy Access to Capital Having an incorporated business also opens the door to investors, who can hold an interest in the business through ownership of its shares, which are distributed when the business needs to raise capital for renovations or expansion. 5. Credibility If you decide to form an LLC and add it to your business name, it creates an image of legitimacy that can enhance your businesss profile in the community and attract business from those looking to deal with professionals. In sum, choosing to incorporate a business can literally save your business from the uncertainties, expenses, and liabilities that confront the business owner on a daily basis. Incorporating can give a business the decisive edge it needs to survive and prosper in any economic climate. If you are interested in incorporating your business, click here to learn more. About the Author: Sahara S. lives in NY. Click here to access the best incorporation services available online. Alaska Incorporation Legal

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