{"id":90777,"date":"2018-03-23T07:35:06","date_gmt":"2018-03-23T07:35:06","guid":{"rendered":"https:\/\/www.nationalfunding.com\/?p=90777"},"modified":"2023-07-19T07:22:04","modified_gmt":"2023-07-19T14:22:04","slug":"incorporating-a-small-business","status":"publish","type":"post","link":"https:\/\/www.nationalfunding.com\/blog\/incorporating-a-small-business\/","title":{"rendered":"Incorporating A Business: Why And How To Do It"},"content":{"rendered":"
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Incorporating a business takes thought, experience and diligence. Most small businesses begin as sole proprietorships. That means that you, the owner, are the business, and the business is you – in the eyes of the law, at least.<\/p>\n

There are a number of benefits to being a sole proprietorship, including the minimal legal expenses involved in forming one, no required corporate tax payments and the ability for the owner to easily transfer or sell the business if he or she so chooses.<\/p>\n

However, there are some situations when a small business owner might consider incorporating a business.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Incorporating a Business Varies from State to State<\/center><\/p><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Why should I incorporate?<\/h2>\n

Fox Business<\/a> pointed out that just the ability to follow your business’s name with “Inc.” offers a tad more credibility\u00a0for\u00a0your organization. Plus, in most states, other companies won’t be able to form a new business with the same name as yours.<\/p>\n

Incorporating has numerous tax benefits<\/a> as well. First, it legally separates you from the company. While this might make tax season a little bit more complex, it also protects you, as a person, from any debts and obligations that your business has. Additionally, corporations can deduct some business expenses, like salaries for employees and new equipment purchases.<\/p>\n

How do I incorporate?<\/h2>\n

When you’re looking to incorporate, the first stop you should make is at the secretary of state or the office in your area in charge of registering corporations in your state. It typically makes the most sense to incorporate in the state in which you operate your business, Incorporate.com explained.<\/p>\n

At the secretary of state’s office, you’ll obtain information about the fees and forms associated with incorporating. Many small-business owners hire an attorney to aid in the process to ensure they\u00a0do\u00a0everything by the books. Others go it alone, using their research skills and some software programs to guide them along.<\/p>\n

Next, you’ll need to create your articles of incorporation. You may write this from scratch, though some states provide a form for you (or your attorney) to fill out. In either case, you’ll include:<\/p>\n