| Protect Your Personal Assets
By far, the overwhelming reason why our clients incorporate or form an LLC is to help protect their personal assets — home, car, family savings, etc. — from business debt. Once incorporated no one can attach your personal assets if your business fails or if you lose a corporate lawsuit, provided you’ve kept the corporation in good standing and have observed corporate formalities. This “limited liability” feature unique to corporations and limited liability companies is not available with a sole proprietorship or general partnership, where the individual or partners are personally liable for all debts of their businesses.
Increase Your Tax Savings
Tax saving options for a corporation or LLC may provide advantages not available to sole proprietorships and partnerships. This is the second principal benefit to our clients. You can establish pension or profit-sharing plans and deduct the moneys you set aside for them from your net profits, thus lowering the corporation’s taxable income. Medical, life and disability insurance premiums can be completely tax deductible when operating in the corporate or LLC form, unlike other entity choices.
A corporation can raise capital through the sale or issuance of its stock, bonds or other securities.
Tax Free Dividends
A corporation may own shares of stock in another corporation and receive 80% of the dividends…tax free!
A corporation is the most enduring form of business structure. It may have perpetual existence. If an owner of a corporation dies, his stock ownership can be quickly transferred thereby allowing the corporation to continue to operate smoothly.
Simplified Estate and Family Planning
Estate and family planning is simplified because shares of a corporation or LLC can be readily distributed to family members pursuant to your estate or business succession plan.
There is great ease in doing business with a corporation or LLC. Many stores and banks favor corporate accounts and some merchants offer corporate discounts.
Our friendly and professional staff is here to assist you. Contact us Today.