Should I Incorporate My Business? Absolutely!

Starting your own business, whether large or small, requires many careful financial considerations that will effect you and your future business.  Creating a business entity, such as a Sole Proprietorship, Corporation, Partnership, or LLC, will help separate your personal financial information from that of your business.  The choice you make can impact many aspects of your business, including taxes, liability, ownership and other factors.  Unless you are well versed in legal matters, you are best to consult a trained lawyer properly setup and execute your business documents.

In the end, a properly setup business could save you future financial troubles, since in most cases, your personal assets will be separated from your business assets.  Remember, according to statistics from the Small Business Administration (SBA), most new businesses fail.  This is an unlikely thought that most new business owners want to consider, but they should have a fail-safe plan just in case the worst happens.

The question asked was, “Should I incorporate my business?”  My answer would be ”absolutely!”  Why take the unnecessary risk.  Protect yourself, your family, and your future by developing a well thought out business plan and then formalize it by incorporating.  There will be an initial expense, but in the end, it will be worth it.

You should also talk to your lawyer about the tax benefits of incorporation.  As a business, you will be able to write-off many things that you could not do before.  This alone may justify the initial and yearly fees that incorporation require.