{"id":6505,"date":"2019-10-05T22:20:16","date_gmt":"2019-10-05T22:20:16","guid":{"rendered":"http:\/\/on-line-interactivity.com\/blog\/2019\/10\/05\/is-incorporating-your-small-business-best-for-you\/"},"modified":"2019-10-05T22:20:16","modified_gmt":"2019-10-05T22:20:16","slug":"is-incorporating-your-small-business-best-for-you","status":"publish","type":"post","link":"https:\/\/on-line-interactivity.com\/blog\/is-incorporating-your-small-business-best-for-you\/","title":{"rendered":"Is Incorporating Your Small Business Best For You"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div><p><body>&#13;<\/p>\n<div align=\"center\">&#13;<\/p>\n<p><a href=\"https:\/\/on-line-interactivity.com\">&#13;<br \/>\n  <img loading=\"lazy\" decoding=\"async\" border=\"0\" src=\"https:\/\/on-line-interactivity.com\/blog\/wp-content\/uploads\/2019\/12\/abbtop.jpg\" width=\"800\" height=\"120\"\/><\/a><br \/><a 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class=\"style7\">&#13;<br \/>\n                <font color=\"#FB7014\" size=\"4\" face=\"Tahoma\">Is Incorporating Your Small Business Best For You?<\/font><\/span><\/div>\n<\/td>\n<p>&#13;<br \/>\n            <\/tr>\n<tr>\n<td align=\"left\" height=\"19\">\n<div align=\"justify\"><span class=\"style2\">by: &#13;<br \/>\n                <font size=\"3\" face=\"Times New Roman\" color=\"#FB7014\">Jeff Schuman<\/font><\/span><\/div>\n<\/td>\n<p>&#13;<br \/>\n            <\/tr>\n<tr>\n<div id=\"article\">\n<td align=\"left\" height=\"12\"><span class=\"style2\">There comes a point in time when every small business person&#13;<br \/>contemplates on whether to incorporate their business or not.  A&#13;<br \/>lot of times small businesses start out sole proprietorships,&#13;<br \/>and then become incorporated as the business expands and&#13;<br \/>develops.  Small business incorporating can be a difficult&#13;<br \/>decision, and with this article you\u0092ll gain a little bit of&#13;<br \/>knowledge on the advantages and disadvantages.&#13;<\/p>\n<p>There are many advantages to incorporating your small business,&#13;<br \/>but limited liability is one of the biggest advantages.  When&#13;<br \/>you have sole proprietorship to the company all the liability of&#13;<br \/>the company is on the owner.  When incorporating the business,&#13;<br \/>your only liability is to however much you invest in the company.&#13;<\/p>\n<p>With sole proprietorship, all of your personal belongings, such&#13;<br \/>as car and home, can be turned over to help pay the debt of the&#13;<br \/>business.  As a shareholder in the business, you have no&#13;<br \/>responsibility whatsoever for the debts of the business, that is&#13;<br \/>of course unless you give a guarantee.&#13;<\/p>\n<p>Another advantage to incorporating a small business is the&#13;<br \/>ability to raise money so much easier.  With the ability to&#13;<br \/>raise money much easier, this increases the odds of the&#13;<br \/>corporation growing and expanding.  Yes, you\u0092re saying any sole&#13;<br \/>proprietorship can borrow money and incur debt like any&#13;<br \/>corporation.  However, with a corporation you can sell shares&#13;<br \/>and raise equity capital, which is a big advantage in that you&#13;<br \/>generally don\u0092t have to repay equity capital and it has no&#13;<br \/>interest.&#13;<\/p>\n<p>There are many tax advantages with becoming a corporation that&#13;<br \/>you can take a look at as well.  Some of these advantages&#13;<br \/>include income splitting, potential tax deferral and more. &#13;<br \/>Along with the reasons above, a corporation can have an&#13;<br \/>unlimited life.  The life of a corporation is not dependent on&#13;<br \/>particular individuals, but the company as a whole.  With this,&#13;<br \/>the company has the opportunity of lasting forever just as long&#13;<br \/>merges with another company or goes bankrupt.&#13;<\/p>\n<p>Now that I\u0092ve buttered up the idea of incorporating your small&#13;<br \/>business, let\u0092s take a look at some of the possible negatives.&#13;<\/p>\n<p>As you incorporate your small business, there now will be two&#13;<br \/>tax returns to file each year, one for your personal income and&#13;<br \/>one for the corporation.  This may not be a huge deal, but&#13;<br \/>unlike a sole proprietorship a corporation cannot deduct its&#13;<br \/>losses from the personal income of the owner.  Plus, having&#13;<br \/>another tax return is the last thing another business owner&#13;<br \/>wants to deal with.&#13;<\/p>\n<p>As a corporation is much larger and more complex then a small&#13;<br \/>business, therefore the cost to create one is much higher.  Just&#13;<br \/>to set up the corporation will cost a lot more, then you have to&#13;<br \/>tack on the increased maintenance fees, accounting fees, and&#13;<br \/>more.&#13;<\/p>\n<p>As with everything else, a larger business means more paperwork&#13;<br \/>that must be taken care of.  Corporations must keep a minute&#13;<br \/>book, which contains the corporate bylaws and minutes from&#13;<br \/>corporate meetings.  Reports and tax returns must be completed&#13;<br \/>neatly and in a timely fashion.  All of the business bank&#13;<br \/>accounts and records have to be kept separate from personal&#13;<br \/>accounts and assets.  That may sound like a load, but that is&#13;<br \/>just the start of the increased paperwork that comes with the&#13;<br \/>territory of incorporating your small business.&#13;<\/p>\n<p>While there are many advantages and disadvantages to&#13;<br \/>incorporating your small business, the decision ultimately goes&#13;<br \/>to you.  It is a decision that could make or break your&#13;<br \/>business, therefore much more research is recommended.  However,&#13;<br \/>small business incorporating should be a thing that suites you&#13;<br \/>and others associated with you best.&#13;<\/p>\n<p>&#13;<br \/>\n About the author:<br \/>&#13;<br \/>\n &#13;<br \/>\n  Small business grants and small business resources to help you start and run your own small business. 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