The Benefits Of Incorporation

What Does Incorporation Mean?

When a business is incorporated, it becomes a corporation. A corporation is a legal entity that is viewed as a separate individual that has most of the same rights that a United States citizen has. Incorporation ensures that the owner’s and shareholder’s personal assets are not jeopardized in case the corporation is sued. This means shareholders and owners don’t have to worry about losing their cars, homes, or personal savings if the corporation dissolves or goes bankrupt.

Why Incorporate?

Incorporating has a variety of benefits for businesses and shareholders:

  • Personal Asset Protection. Much like an LLC, owners of a corporation are separate from the corporation. In a properly managed and structured corporation, owners have limited liability for business debts and obligations. That’s why choosing a company that specializes in entity formation like Safe Shield is the only method to ensure that your corporation will be formed correctly and stay compliant.
  • More Credibility and Name Protection. Adding an “INC” to the end of a business instantly gives it credibility. Other entities, vendors, and consumers will want to work with your business. And in some states, other businesses will be forbidden to use your name.
  • Flexible Taxation. The owner of a corporation is taxed on the corporate and individual level, but can avoid taxes on both ends by filing for Sub-chapter S tax status.
  • Survival. Corporations can survive even after their owners are long gone, since they are considered “individuals” in the eyes of the law.
  • Great Deductibles. Corporations can deduct everyday business expenses, plus salaries before doling out income to owners.

Business Formation With Safe Shield

We encourage you to learn more about what we provide within our Business Formation System, or schedule a phone call with one of our experts.