The truth is, many new business owners and entrepreneurs are unsure about business incorporation – the statement above is a common retort we hear from companies in their infancy. The paperwork is tedious and the fees are expensive, especially for a fledgling start-up.
And while there are several structures to choose from when incorporating a business (i.e. LLC, C corporation, S corporation, and more), there are several benefits to taking this important step.
Perhaps the biggest benefit of incorporating your business is that it puts a wall of separation between you and your business. The risk to personal assets is one reason many never even start a business. Incorporating your business though does provide at least some protection to personal assets like your home, bank account(s) and other property.
This is because an incorporated business, especially a "corporation," is its own legal entity that's treated separately from the founders, officers and shareholders of the company. This of course reduces liabilities to these individuals. There are limited instances where an individual can be held to account for actions undertaken by the company – typically, this only occurs in cases of willful negligence or criminal activities.
(Consult with an experienced business law attorney to better understand liability and your business)
Besides protecting your personal assets, other benefits of incorporating your business include:
Although the benefits to you personally and your venture should be clearer now, there are disadvantages and challenges to incorporating your business. Paperwork can be really cumbersome and the fees expensive, especially for smaller businesses.
Business incorporation specialists at MaxFilings assist entrepreneurs in all 50 states and the District of Columbia formally incorporate their businesses. We handle all the filings and other forms needed to get your company off the ground.
Simply enter your business' information into our system and choose the state you're filing in as well as the business structure. And don't worry – if you're short on time or need to gather more documents, MaxFilings' online business incorporation system lets you save your work and come back at a later time.
But if you're ready to begin the process of incorporating your business, check out our up-front pricing page. Know how much your incorporation will cost before you begin. If you have any questions about the business incorporation process at MaxFilings, please feel free to contact us by calling us toll-free at (888) 978-8426.