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Incorporate a Business

 

Incorporating your business as a corporation provides many benefits. The main two reasons you would want to do this are:

1. personal protection against a lawsuit

2. tax benefits and savings

LIABILITY: If you incorporate, you will not be personally responsible for anything that the business is sued for. Judgments or liens cannot be placed on your house, your personal property and other non-business assets. The only thing they can go after is things that belong to the corporation. If you are currently a DBA, a sole proprietorship, a partnership, there is a good chance that your personal property can be seized, liened or taken if you are sued in the course of business. And lawsuits in business are not that uncommon. All you have to do is irritate that one client or customer and then next thing you know, you will be worried about losing it all.

TAX BENEFITS: Forming a corporation, if it's an S Corp, will also save you from double taxation. As it is now, your corporation is taxed, and then you are personally taxed. Forming an S Corp will allow the profits (and losses) to pass through to your individual IRS or income tax return, saving you potentially thousands of dollars in taxes each year from IRS collection.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
Related sites: Santa Clarita Valley Bankruptcy | Antelope Valley Bankruptcy | Los Angeles Bankruptcy
 
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