Incorporating a Business 2016
Are you looking at incorporating a business in 2016? Do you have questions about incorporating a business next year?
Hundreds of thousands of entrepreneurs will make the decisions to start a business in 2016. Many have no idea how to choose the best entity type for their company. Many entrepreneurs don’t even know what their options are when it comes to incorporating a business in 2016.
Here are the options for incorporating a business.
- Sole Proprietorship
- General Partnership
- Limited Partnership
- Limited Liability Partnership
- Professional Corporation
- S Corporation
- C Corporation
- Non Profit Corporation
Lessons for Incorporating a Business
Of course there are differences between each type of entity. There are advantages and disadvantages to each. Here are a few great articles that explain the differences in incorporating a business with each type of entity.
Top Reasons to Incorporate in 2016
Asset Protection – Create a layer of protection for your personal assets. By incorporating with a S Corp, C Corp or LLC you’re building a wall of asset protection between your business activities and your personal assets.
Tax Advantages – There are several tax advantages to incorporating a business. Here is a large list put together by Intuit.
Credibility – Running a business with LLC or Inc after the name will automatically add credibility for any business. Employees, Vendors, Clients and Prospects all look at a business with more credibility when the owners have taken the time for incorporating a business.
Easier to Obtain Credit and Capital – If you’re looking to obtain a bank loan or find investors, business owners will have an easier time getting funding as a Corporation or LLC.
No matter what the reason is for incorporating your business, make sure you take the time to learn all the benefits and which entity is right for your situation. You should also consider speaking with a professional advisor to help in making your decision whenever possible.