- What is an incorporated business?
An incorporated business is a means of doing business with limited liability protection and superior tax deductions. There are significant advantages to operating as an incorporated business or, as it is also known, through a corporation or LLC.
- What is the first step to start an incorporated business?
It is always a good idea to understand your options before starting an incorporated business. Sole proprietorships and general partnerships offer zero protection from claims. If your business is sued your personal assets are at risk. An incorporated business protects your personal assets. An incorporated business can be a corporation or, in some cases, an LLC. An incorporated business can be an LLC taxed as an S corporation. There are several choices. It is best to work with a firm to understand which incorporated business is best for you. Sutton Law Center provides this advice.
- How do you form an incorporated business?
Once we decide which incorporated business is best for you, we file articles with the state to gain permission to operate as an incorporated business. The difference between an incorporated business and a weaker sole proprietorship or partnerships is that the weaker choices are not chartered by the state. The charter of an incorporated business is what provides you with the limited liability protection to keep your personal assets away from risk. If someone sues your incorporated business they have a claim against your incorporated business but do not have a claim against your personal assets.
- What are the ongoing steps to remain an incorporated business?
To maintain limited liability protection for your incorporated business you must follow the corporate formalities. These include paying the annual fee to the state, holding meetings once a year and preparing a record of such annual meetings. An incorporated business can lose its limited liability protection by not following the corporate formalities. We will work with your incorporated business to make certain the corporate formalities are followed.
- What are the tax benefits of an incorporated business?
First, you have a lower IRS audit risk with an incorporated business. Sole proprietorships and general partnerships are audited (reviewed) by the IRS at a five times greater rate than an incorporated business. As well, the tax code provides numerous incentives for those who form and operate an incorporated business.
- What is the best state for an incorporated business?
Nevada offers superior asset protection for an incorporated business set up as a corporation. Both Nevada and Wyoming offer excellent asset protection for incorporated businesses set up as an LLC. The state you choose is an important factor in maximizing the benefits of an incorporated business.
- What is the next step to start an incorporated business?
The next step is to call us at 1-800-700-1430 to begin your incorporated business. Our incorporating specialists will help you form an incorporated business right away. The sooner you have an incorporated business the better protected you are into the future.
Contact Our Corporation Lawyers
For more help with understanding how to incorporate a business, please contact our corporation lawyers from Sutton Law Center at 1-800-700-1430.