Choosing a legal entity is one of the many important decisions you make when starting up your own business. We The People of NY, trusted legal services providers in New York, recommends incorporating for the following reasons:
- Liability Protection: A corporation is a completely separate legal entity from its owners, meaning that you are not personally responsible for the company’s debts. In the case of bankruptcy, it’s comforting to know you won’t lose your house or car.
- Tax Advantages: Corporations allow you to write off business costs, such as operating expenses and health insurance premiums. An S-Corp allows you to avoid paying higher business income taxes while still enjoying the benefits of incorporation.
- Credibility: Formally incorporating can help you grow your business by presenting a more professional appearance to potential clients and partners.
- Easier Access to Funds: Selling stock is a fast way to raise funds for expansion or new projects, and most banks prefer to issue business loans to borrowers who have officially incorporated.
- Retirement Opportunities: 401ks and other retirement funds can be easier to establish.
- Perpetual Existence: As a separate legal entity, a corporation does not cease to exist if you die or sell your shares, so the business will go on.
Visit We The People of NY online to learn more about the benefits of incorporations, or call (212) 633-2200 with any additional questions. For additional assistance, or for help preparing for a divorce or bankruptcy, you can also speak to someone in person at their convenient storefront, located at 219 West 14th St. between 7th and 8th Avenue.