Should You Incorporate Your New Business?

One of the biggest risks of opening up your own company is that you are legally tied to it as well. This means that if any lawsuits come against the company, they are likely to come at you as well. Understandably, business owners will begin to think about how they can separate themselves from their new business. One of the best ways to do this is through what is called incorporating a business. But before you begin the process, read on why you may or may not want to go this route.

Your New Business and Capital

A common concern of new business owners is the ability to increase capital. Capital is needed to start new projects, hire specialists, and everything in between. A benefit of incorporating your company is that it makes raising capital easier. The reason for this is because banks are much more likely to loan to incorporated companies and even give them a lower rate.

Corporation Increases Ability to Sell

Owners go into business wanting to grow their company. Some may even decide to sell it in the future if the value is high enough. However, if you have an LLC or sole proprietorship, it may be a little difficult to sell. Incorporating your company will make the process that much easier and thus more attractive to buyers. It is highly recommended to seek the services of a business planning lawyer in Las Vegas to ensure that this process is set up correctly.

Reduction in Taxes

When a business is attached to its owner, they are likely to be taxed as a high-income earner. Incorporating a company provides what is called tax deferral. This allows you to remove much of the company’s income from your own, thus reducing the amount of taxes you pay each year.