Should I incorporate my small business?
Answer:
You should consider incorportion or at the least, a Limited License Corporation (LLC). This helps protect YOUR personal assets should the business fail.
Most cities have a small business association or similar group that can help answer questions you have about this topic.
Yes. Incorporation protects you against personal liability for business losses. There are also potential tax benefits. Talk to your lawyer and accountant.
No. Use an LLC for tax purposes.
Yes. Incorporating your business will protect you from being personally liable for any judgements or lawsuits brought forth against your business. Only the corporation would be liable and all of your personal assets could not be attached.
If you are making more money than you need, and wish to leave profits in the business as capitol, then incorporate. Taxes on the corporate profits are less than personal tax.
If you are only making enough to live on, with very little profit in the business, you can remain a privately owned business, entrepreneur.
Incorporation does protect you personally against some liability. As to debts, an owner of a small business is most often required to sign a personal guarantee for purchases.
That depends on what kind of business you are running, how much liability you are willing to take on personally, your budget and other personal choices. The main advantage to incorporating is to protect your personal assets from any trouble the business may run into. The advantages far outweigh staying a sole proprietor.
It depends if you think there is a lot of liability that someone would come after you, then yes. There are several on line incorporation services that can help you determine if you should incorporate and they can then complete the process for you:
http://www.nomorecubes.com/incorporation.
I hope this helps!
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