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Carolyn Smagalski
Business Basics
Founder - Editor - Host
There are many reasons why small
business owners choose to incorporate or form an LLC. The
major reason is the limited liability protection corporations
and LLCs are afforded. This means the company is viewed as a
separate entity from the individual owner, and the owner is
not typically held responsible for the debts and obligations
of the company.
Other Advantages of Forming a Corporation
-
A corporation’s existence is not dependent on
its owners, therefore, it has unlimited life.
-
Opportunity of
gaining professional credibility with customers, vendors,
employees and partners.
-
Retirement funds
and qualified retirement plans, such as 401(k), may be
established more easily.
-
Ownership is
typically easily transferable.
-
Capital may be
raised more easily through the sale of stock.
-
Tax benefits.
LLCs possess other benefits which
small business owners may find attractive.
Other Advantages of Forming an LLC
-
Earnings of an LLC are only taxed once,
therefore, allowing the benefit of pass-through taxation.
-
LLCs are free to
establish any organization structure agreed upon by the
members.
-
LLCs are much
less formal than corporations and are not required to keep
corporate records.
-
Tax benefits.
Don’t miss this opportunity! Take
advantage of tax season-- of the advantages forming a
corporation or an LLC will provide.
Content copyright © 2003-2008 by Carolyn
Smagalski. All rights reserved. This content was written
by Carolyn Smagalski. If you wish to use this content in any
manner, you need written permission.
Contact Carolyn Smagalski
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