Reasons To Incorporate Your Business
14/09/09 | Kentucky Business Network
Protect your family’s personal assets
Incorporating your business will provide you with a protective wall between your business and personal life. An incorporated business will help to keep safe your personal assets from the risks of business. If you don’t incorporate, you could risk losing your personal savings, college savings, etc.
Tax advantages
An incorporated business can reduce the amount of tax owed to the IRS by deducting any costs that are related to the business. Depending on your type of business, there are numerous tax benefits for home business owners. Besides equipment like books and computers, you can also deduct salaries, bonuses, and medical and retirement payments paid to employees.
Establish credibility
A formal business structure provides your business with a sense of legitimacy in the eyes of your customers, vendors, and banks.
Raise money by selling stock
Should your business need more capital, you can issue shares of stock to investors from an incorporated business. Capital can be raised by selling stock whether your business is a startup or is a well established company that is seeking to expand.
