|All legal and tax professionals agree, if your business is
not incorporated you may be throwing away thousands of dollars in tax savings
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.