The new year is usually a time for many of us to reevaluate our personal lives. We often make resolutions: Exercise more. Learn how to play an instrument. Cook healthier meals. Only to quit halfway through January.
But what about your business? Have you made a new year’s resolution for your business? Just as the new year is a great time to reevaluate our personal lives, it’s also a great time to reevaluate your business. And the difference is: Rocket Lawyer is here to help you achieve that new year’s resolution.
So what will your new year’s resolution be? One easy resolution you can make this year that can have a profoundly positive impact on your business is incorporating. Whether your business is still finding its footing in its industry, or your business saw its biggest sales record to date just last week, incorporating can help any business — big or small. Here are some benefits of incorporating:
Protect your personal assets
Whenever you’re doing business, there’s always a possibility for liability. Let’s say, you own a roller skating rink. If your business isn’t incorporated, your personal assets are tied to your business with no distinction in the eyes of the law. If someone gets hurts at your roller skating rink, that person may be able to sue you and your business. And since there is no separation between your personal assets and your business, your personal assets, like your car, home, and savings, can be at risk.
Even if your business doesn’t entail possible physical injuries, there are still many possible instances that may put you in a liable position if you’re not incorporated. In the end, it’s safer idea to protect you and your personal assets by incorporating so you can avoid a potentially huge legal mess.
Take advantage of tax benefits
Depending on what business entity you incorporate as, you’re usually able to draw a salary, avoid tax on profits, write off business expenses and losses, and so much more. All that new office equipment you bought? You may be able to deduct those expenses on your taxes — as long as they follow the IRS tax code, of course.
Grow your business for the future
Did you know that once you incorporate you can obtain loans from banks and lenders much more easily than if you weren’t incorporated? What does this mean for your business? It means that your business can set itself up for success and have more capital to grow. That extra padding of funds can help you hire the right employees and remain competitive in your industry.
Additionally, if you incorporate as a corporation, you have the ability to sell stocks. This gives you another avenue to acquire capital. Selling stocks can attract investors that can offer funds and guidance as you continue to grow your business for the future.
If you’re looking to make this year even better than last year for your business, why not make incorporating your small business your new year’s resolution? We can help you incorporate today. And bonus: Incorporating with Rocket Lawyer is simple. Here are four quick steps towards incorporating:
Not sure which business entity you want to incorporate as? No problem. Simply take this business structure quiz to see what entity is right for your business. Based on your responses, the recommendation tool will research and calculate the right entity for you. It only takes a few minutes.
If the whole process feels overwhelming, you can talk to our incorporation specialists, or ask a lawyer a question. Our incorporation specialists have helped thousands of businesses incorporate every year and can answer your questions about the whole process. We also have lawyers that specialize in the incorporation process.
Once you’ve figured out which business entity to incorporate as, you can incorporate with Rocket Lawyer.
And if you’ve decided to incorporate as an LLC, we have an interactive map that will help you choose where to form your company. We’ve done all the research for you, so all you have to do is simply pick the state in which you want to start your LLC and in seconds, you’ll learn about all the rules and costs associated with launching and running your LLC.
Our Starting a Business guide gives a great overview of everything from writing a business plan to financing your business. In this guide, we teach you how best to set up your new business for success.
We also have a How to Run a Business guide that’ll cover all of the major legal processes, from staying compliant to filing for an IPO, and everything in between.
What are some of your new year’s resolutions for your small business this year? Share in the comments below!