Choosing the right business structure makes a big difference in the trajectory of your company and your future growth opportunities. As you weigh your business structure options, you might wonder if incorporating your business is the best solution.
Incorporating your business offers a range of benefits that extend beyond just the legal distinctions.
Perpetual existence
Incorporating your business creates a separate legal entity that adds credibility to the business. Your corporation will exist separately from you and can continue on regardless of any changes in ownership or shareholders. This creates a solid foundation for building partnerships and attracting investors.
Tax advantages
Corporations benefit from lower tax rates and shareholders can take advantage of many tax incentives. Leveraging the tax advantages and maximizing business expense deductions can improve your company’s bottom line.
Funding opportunities
Forming a corporation provides diverse opportunities for raising capital. Corporations can issue stock, making it easier to attract investors. This makes it easier for businesses to expand and invest in the latest technology.
Personal protections
When you worry about your personal assets and financial security, choosing a corporation provides you with the opportunity to separate yourself from your business. As a corporation, your business is an independent legal entity, which means your assets have no bearing on any claims against the business.
According to the Small Business & Entrepreneurship Council, there were more than 6.1 million employer firms in the U.S. in 2019 and 96.2% of the C-corporations had fewer than 100 employees. Consider the advantages of incorporation as you decide on your business structure.