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Why Incorporate Your Business vs. Risking Operating as a Sole Proprietorship

Anyone who operates a business, alone or with others, may incorporate. Under the right circumstances, the owner of any size business can benefit! 

But maybe you're wondering, "How can I be sure I'm choosing the right entity? Wait - what happens if I choose the wrong one? Will the IRS come after me? Will I really be protected against lawsuits? I have so many questions."

Everyone in business is looking for iron-clad protection, striving to "bullet proof" their company against today's ultra-competitive business climate. If you're like most, you've probably asked yourself the questions above... or maybe you haven't yet decided whether incorporation is right for you. Maybe you're still wondering.

•  Why incorporate at all? And why in Nevada, versus in my home state?

•  What are Nevada's benefits?

•  Why starting your business as a sole proprietorship may prevent your business from having access to credit for your business after you incorporate! Hint: Your "revolving debt ratio" is a major factor and this is something you will never hear from your CPA!

•  S-Corporation. C-Corporation. LLC. What's the difference?

•  Do I have choices as to how my LLC will be taxed? How do I know which is best for me?

•  Why is it so important to separate my personal and business credit? What is the difference between trade and lines of credit?

•  What does NCP do to help me be one of the rare 5% of business owners who make it past the first five years? Will they actually help my business make more profits?

•  Let's be honest, I intend to compare you to others. But what should I look for?

•  Why use a company like Nevada Corporate Planners to incorporate my business?

The following pages will answer these and many more questions, giving you a solid starting point for one of the most important decisions you'll ever make to ensure the security, resilience, and prosperity of your business.

We at NCP know that if you understand the importance of incorporation and have a firm grasp on all of your options, you'll undoubtedly see the value of the services we offer. The information here is only a small part of the contribution that NCP will make to your business, both in the incorporation phase and beyond. But let's get right down to business.

Why Incorporate?

First, let's look at the basic question at hand: Why bother with incorporation at all?

If you're like many small business owners, right now you're operating as a sole proprietorship. That's probably not because you've chosen to, but because you don't consider your business large or sophisticated enough to need to incorporate - or maybe you've never thought about it at all.

If you're lucky, you'll never have to pay the price for putting off that crucial next step. But that's a very dangerous "if".


Beware of the "Top 20 Costly Incorporating Mistakes"

Even One Could Cost You Your Business!

Sole Proprietors Are Rolling the Dice

Read More...

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