Incorporate a business FAQs
Yes, even if it is just for liability protection. Imagine you are an event organizer and without proper insurance, someone gets hurt at your event. In this situation, you could lose your assets such as your home, and be personally liable for paying for damages. Or imagine, you are self-employed and running a business as yourself and you end up saddled with a lot of business debt and revenue is low. In this case, you can be held personally liable for your business debt. For liability protection alone, it is worth setting up your own business entity.
No, you do not; however, it is recommended. Most can easily form a simple LLC on their own using our services. If you are looking to form an S-Corp or C-Corp and have numerous contributing members, you may benefit from having a lawyer review your business documents. With a membership, you can benefit from 40 percent off standard lawyer fees. We can also provide registered agent services in any state. Hiring a lawyer is not cost-prohibitive with a membership.
Both offer advantages: however, in most cases, an LLC is easier for small business owners to operate. An LLC is the most common business entity formed. Both provide liability protection and possible tax advantages. Your accountant can help you decide which type of business entity will suit your needs best.
It might. Investors most often want to know how your business is structured, who the financial contributors are, how revenue is handled, what debt is held, and more. The process of forming a business entity and writing a business plan help you show potential investors the information they need to decide whether they want to invest in your company or not. If you have multiple owners, incorporating is highly recommended. If you are a sole entrepreneur, you should at least be prepared to share your business plan.