All
legal and tax professionals agree, if your business is not incorporated
you may be throwing away thousands of dollars in tax savings and
deductions.
In addition, all of your personal assets such as your
home, cars, boats, savings and investments are at risk and could be
used to satisfy any law suits, debt or liability incurred by the
business. Forming a Corporation can provide the protection and tax
savings needed to give you peace of mind and make your business even
more successful and profitable.
Some Benefits Include:
Liability Protection:
Properly forming and maintaining a corporation will provide personal
liability protection to the owners or shareholders of the corporation
for any debt or liability incurred by the business. Personal liability
of the shareholders is normally limited to the amount of money invested
in the corporation.
Tax Advantages: Another important
benefit is that a corporation can be structured many ways to provide
substantial tax savings. You can minimize self-employment taxes and
increase the number of allowable deductions lowering the taxes you pay
on the income of the business. Many corporations structure retirement
and tax deferred savings plans for their owners and employees which can
provide even greater tax savings.
Raising Capital: Sale
of stock for the purposes of raising capital is often more attractive to
investors than other forms of equity sales. A corporation can also
issue Corporate Bonds to raise capital for expenditures without
compromising the ownership of the business.
Friday, February 12, 2016
