Owning your own business is tough work but the rewards can be great; after all, small business ownership has made more people wealthy than any other single factor including stocks, bonds or even real estate. In fact, owning your own business is the number one way to gain financial independence and personal freedom. Not sure if you need to
incorporate your business? Here are the top reasons why you should:
1. Legitimacy
There is a difference between a business and a “job replacement”. Most small business owners are simply replacing a “job”. They work for themselves as sole proprietors and are legally conducting a business but incorporating takes it to the next level. The business becomes its own entity and is recognized as such by other business owners and corporations.
2. Limited Liability
Incorporating your business helps shield your personal assets from your business assets and risk. By incorporating, the business is responsible for the debt and liability incurred during the normal course of operations.
3. Fewer Taxes
Depending upon your specific situation, there are numerous tax advantages to incorporating. There is a very real reason the largest companies and richest men and women in the nation incorporate their businesses – learn from their example.