Benefits of Incorporation
1. Introduction – As a corporation, you’re entitled to advantages that a non-corporate entity isn’t. For example, you get tax advantages such as deduction of medical insurance and business losses, and you can open a tax-deferred trust fund for your future retirement.
2. Taxes – Incorporation vs. Self-Employment – We all know that the only sure things in life are death and taxes. And taxes tend to be the more bothersome of the two when it comes to managing a business. Taxes can take a big bite out of your profits, which is the number one reason to weigh your options when considering business structures.
3. Taxes – Incorporation vs. Self-Employment – Part 2
4. Business Tax Deductions – If saving on self-employment tax and offering potential tax rate breaks isn’t enough, incorporating offers a whole laundry list of savings with eligible deductions.
5. Business Tax Deductions – Part 2
6. Medical Insurance – We’ve already established that a company’s share of employee medical insurance premiums can be considered a tax deduction but let’s consider medical insurance coverage in general.
7. Medical Insurance – Part 2
8. Retirement Plans – Retirement plans are a big part of the benefits packages which large employers use to attract potential employees. Employees like the ability to set aside tax deferred funds for retirement as well as lower their taxable income in the present.
9. Business Losses – The subject of business losses brings us back to weighing the pros and cons of LLCs, S-corps and traditional corporations.
10. Other Benefits of Incorporating – Aside from the above category-specific benefits you can use when you launch a corporation, there are other areas you’ll want to take advantage of to maximize your profit potential.