Should you incorporate your business or run it as a sole proprietorship? Each option has its benefits, but it is worth noting some of the additional benefits that can be obtained when you incorporate your business, such as limited liability and tax advantages.
If you've already checked for company name availability and are currently working on making this decision, you should know your options.
A sole proprietorship affords many benefits as well. It means you will be the only business owner. This means that you will be in full authority to make all of the decisions for the company. However, you may not have the advantages of the protections that come from incorporating your business.
A sole proprietorship may seem like the right move during the beginning stages, but if your business begins to do well, expansion may be inevitable. As your company grows and you take on more employees, you may want to think about incorporating.
Incorporating your business allows you to set up your company so that you will be able to expand it when the time comes. Part of this expansion could include appealing to investors. Incorporation requires you to select a structure for your company, which will play an important role in the success of your business. You may want to select a corporate structure such as an LLC, C-Corp or S-Corp.
When you incorporate your business, you obtain benefits like limited liability protection, tax deductions and corporate tax rates. When the time comes, a trusted incorporation services company will be there to serve as a resource and answer any questions you have.