Looking to Start a Business? Here Are Five Benefits of Business Incorporation
While looking to start a new business, you need to ensure that you build it on a firm foundation. Business incorporation plays a crucial role in that foundation; it ensures that you remain in good standing with the federal and state government.
As an entrepreneur looking to register their business, there are several entities you can pick from, depending on the type of business you wish to operate. This includes:
- S Corporation
- C Corporation
- DBA (Doing Business As)
- LLC (Limited Liability Company)
Benefits of incorporation
Other than ensuring that your business remains in good books with the government, incorporating your business comes with the following benefits:
- Protects your personal assets by separating them from the business’ assets and liability. This means creditors can’t come after your personal assets in case of a lawsuit.
- You gain easier access to capital. This makes it easier for you to grow and develop your business. Corporations generally have access to more alternatives of capital. They can use this to settle debts and so on.
- Business incorporation adds credibility to your business. From suppliers to customers and partners, they will all perceive your business as being more stable and reliable, making incorporation a worthy investment.
- Perpetual existence. To date, corporations remain the most enduring business structure. This means that your business can continue to exist indefinitely, irrespective of what happens to you or any of the other business partners.
- Privacy. Business incorporation offers you much-needed privacy in this age of heightened insecurity. If you want to open a business and remain anonymous, then incorporation is the way to go.