Whether you are a small business owner, freelancer, or have a side hustle, incorporating can be a smart decision to make. Taking the right legal steps to ensure that your company is protected can save you thousands in legal fees.
Here are just a few ways that incorporating can benefit your business:
Protect your business name
Filing articles of incorporation can serve to strengthen and protect your company’s name. It prevents other companies in your state from officially starting a business under the same name. This, in turn, can improve marketing, branding and general name recognition.
Once you establish your business as its own entity, you gain legitimacy. You can do things with your business that are often more difficult for sole proprietors, such as raise funding, finding advisors, and partnering with other companies. Potential customers will appreciate dealing with a registered company that takes business seriously and knows how to play by the rules.
Protect personal assets
Incorporation creates a separate legal entity for your business. Operating your business as a separate entity protects your personal assets, like your home, car, and savings. As a result, you generally will not be personally liable for debts and judgments against your business.
An incorporated business can be taxed separately from the owner in most cases. However, LLCs, which are the most popular business entity, can elect how they are taxed. This is probably one of many advantages of forming an LLC. You can decide whether it’s better to file your taxes as a “pass-through entity” or to receive corporate treatment. A pass-through entity is treated the same as a sole proprietor, so your LLC’s income will be treated as personal income. If you choose corporate taxation, your business will be taxed at a corporate rate. Any LLC can choose this tax treatment by filing IRS form 8832.
Because everyone’s situation is unique, you should consult with a CPA or other tax professional to know which option is best for you.
Power up your business
We make it easy to incorporate with step-by-step guidance
Why Rocket Lawyer?
It is our mission to make the law simple and affordable. We handle the legal, so you can focus on growing your business.
To incorporate with Rocket Lawyer, all you need to do is answer a few simple questions and we’ll handle the rest. We’ll check to make sure your business name is available, file all your paperwork, store your documents online, and make sure you can access all the legal help you need.
We’ve helped thousands of people everyday start and run their businesses in all 50 states. Here’s what some of our customers have had to say:
“Rocket Lawyer is easy to use and friendly. The affordability is also a factor. It’s on demand, which is really nice since you don’t have to wait for a lawyer two or three days because they’re always busy. You can draft a lease or start an LLC anytime..”
Co-Founder, Azar Realty Group, INC.
Rocket Lawyer Member since 2015
“I chose Rocket Lawyer because it spoke to me for the fact it was really easy to use and to customize for what I needed to get done. I’ve been loyal to Rocket Lawyer for several years now.”
Founder & CEO, Grobecker Holland International
Rocket Lawyer Member Since 2014
Are you convinced yet? Incorporating can be a great idea for your business, and it’s a lot easier than you think. Check out our incorporation center to get started today.