If you've already decided that you want to incorporate your business at some point, the next question becomes when...
If you haven't yet made the decision to incorporate, you can read more about some of the factors that can help you decide whether or not you should incorporate here: Should I incorporate my business?
Determining "when" to incorporate your business is relatively simple. The most likely answer will be to go ahead and form your corporation once you've determined it's the right thing to do.
Here are a few factors you may want to consider as you plan the timing for incorporating your business.
Is your business already up and running?
If your business is already in operation, forming your corporation immediately will probably make the most sense since you will want to get limited liability protection in place as soon as possible. Why leave your personal assets exposed any longer than absolutely necessary?
In addition, you can save money by forming a corporation prior to year-end. A mid-year incorporation will result in the additional time and expense required to file two tax returns - but that will almost surely be offset by the self employment taxes you save by incorporating prior to the end of the year.
Want to start the online incorporation process now? MaxFilings lets you incorporate your business right away… or just start organizing all your information and save it until you're ready! Start here today >>
Is your business not yet in operation?
Assuming your business will not begin operations until the following year, you could choose to wait until then to form your corporation or LLC in order to avoid paying taxes or other applicable fees for the current year.
On the other hand, it would be beneficial to incorporate now while you can devote your full attention to this important step. After all, you will have more than enough to do as your launch nears and demands on your time mount. You can be sure that getting your business up and running will at some point become more than a full time job, and you don't want to be left scrambling to incorporate at the last minute.
And don't overlook a very real risk in waiting - losing the name you would like for your new business. The longer you wait the more likely your ideal company name will be taken by another business. You know that a good business name is a valuable asset, and you will want to take steps to secure one that's right for you.
You can incorporate your business right away at MaxFilings … or just start organizing all your information and save it until you're ready! Start here today >>
Conclusion: So, When Should You Incorporate?
It seems safe to conclude that the best time for a business that's up and running to incorporate is NOW.
And the best time to form a corporation for a business that's not yet in operation is MAYBE NOW or MAYBE LATER…
If now is the time for you to get serious about forming your corporation, you can start entering your information now and save it until you're ready to place your order. You're under no obligation now or later and there is no charge to enter and store your incorporation information.