Why Incorporate your Business?

There are many reasons why you should incorporate your business. Many self employed workers or sole proprietors are working for themselves and have no protection against liability or high income tax rates. These are the two main reasons why I recommend that a business owner get incorporated.

Liability.

Registering your company with the state you chose to do business in is important. By being incorporated under the right entity,  this protects you the small business owner from personally being liable for the company's liabilities should someone try to sue the company. Local, state and federal courts are filled with law suits against businesses. Incorporating your business also provides for asset protection. You can purchase vehicles, real estate and other assets for example under the company and not be personally liable due to some unforeseen circumstances.

Income Tax

Today the top marginal tax rate is 35% for individuals. As a self employed individual or a sol proprietor you would be subject to paying this high tax rate on all income earned from your business operations. By incorporating your business under the right entity you can save hundreds if not thousands of dollars in taxes. As a business owner filing a corporate tax return, there are so many tax loop holes like deductions and credits that you qualify for which would decrease your tax liability considerably. The Internal Revenue Code is littered with tax deductions for businesses. And did you know that most business owners who operate under a small business entity pay less in taxes than a regular individual taxpayer? That's because they understand the power of asset protection and taxation.

There are many other reasons to incorporate your business but I have discussed a couple that I feel is the most important. 

We at Business Credit America pride ourselves in helping small business owners set up their businesses the right way. We have services to assist you in from incorporation to online registration. Visit  us today to begin your journey to having full protection under a corporate armor (business incorporation).  

Call to speak with one of our business credit specialist. 1-888-821-6408 ext 2 or visit us at http://www.businesscreditamerica.com/  to get a listing of products and services.

Al,
Business Credit Consultant
alplouis@gmail.com
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