Incorporate My Business Why?
Incorporating your businesses is the process of converting a business into a corporation. Incorporating your business means that your business is now finally a separate individual in the context of the governing laws of the land. After successfully incorporating your business, you will be allowed to use the corporate qualifier Inc. after the name of your company.
Here are some of the reasons why you should consider incorporating your business.
1. The most important benefit of incorporating your business is that your personal assets are now separate as your business is now a separate entity for the law. This means your business is responsible for its own debts and credits. Unlike the sole proprietorship, you will not be personally held responsible for any loans taken by the company, nor will you remain personally liable for any illicit activity going on in your company’s name.
2. By incorporating your business, you can easily sell it or transfer to any other person without a lot of paperwork and other bureaucratic complexities. If you are incorporating your business in the state of Delaware, you will not be needed to do any filing of change of ownership.
3. After incorporating your business, you are now eligible to get retirement pensions and other benefits from your company as required by the federal and state laws.
4. The fourth and the most lucrative reason for incorporating your business are taxes. Both the federal and state taxes levied over businesses in the U.S. are much lower than those which are levied from the individual. After incorporating your business, you also become able to buy shares of other companies and what’s more you even get up to 80% discounts on earning from the share dividends.
5. The most favorable reason of incorporating your business is that now your business can raise money by getting listed in stock exchanges. After incorporating your business and ensuring compliance to the Sarbanes Oxley Act, you become eligible to release an IPO and raise money by selling company stock.
6. The sixth reason for incorporating your business is that now your business will not be getting into legal complexities in case you die. Nor will it have to go through a probate before your heirs can take charge of its assets. Thanks to the decision of incorporating your business, your company is not a property of anyone, rather it is an enduring entity which can hold property in its own name.
Above all these reasons, the most important reason for incorporating your business is that it will boost the credit rating of the company. Because the company is now a separate entity for the law of the land, it will now be holding its own history of credit.