Launching your own business is a necessity for many in today’s world.  Corporate downsizing and natural disasters have forced many people to create their own opportunities.

 With the experts warning of a coming pandemic, even more entrepreneurs are hurriedly trying to throw together a company that can keep them out of the public workforce and profiting from the comfort of their own home.

 Others hit a glass ceiling and have nowhere else to go in the corporate world, so they launch their own companies to become top dog and sit in a position with no boundaries.

 Self-employed individuals and small businesses are no longer a rarity – they’re becoming the norm in today’s society.  At a time when fortune 500 companies are having massive layoffs, the opposite is true for entrepreneurs – their existence is surging at an amazing rate!

Not every element of incorporating can have a silver lining.  There will be some things you like about it, and others you dislike. Aside from the tax benefits a corporation will offer you, there are also business reasons to incorporate – such as branding value and the ability to raise capital when necessary.

Many people are intimidated at the thought of incorporating.  It seems to them like something only “big money” businesses would do.  But anyone can incorporate – from the guy who mows your lawn to a grandmother whose eBay business is gaining speed.

Perhaps the biggest reason people choose to incorporate is to save money.  If you’re self-employed, Uncle Sam takes a large chunk of your earnings.  But with a corporation in place, much of your income is sheltered from taxes.

You’ll also have a greater place in society as a corporation.  Business offers will flood in to a corporation – from corporate credit accounts to discounts at local or national stores.

If there comes a time when you need to hire a staff, they’ll feel better about applying for a job with a corporation than they will with a small business – often due to the failure rates for small businesses.

You’ll be able to offer the corporate employees better medical, dental, and vision plans.  You’ll also have the protection of worker’s compensation, which is something unavailable to self-employed individuals.  And if you are incorporated, you can deduct all of your family’s medical bills as a business expense. 

So what are the drawbacks of incorporating?

Well if you hate paperwork and keeping records, then you won’t much like being a corporation.  But we can show you how to minimize the stress of those tasks.

Also, you’ll be setting your own salary and budgeting your corporation’s money, so you need to be financially savvy about what’s good for your business and your personal income.

You may also need to have someone else handle your taxes, since you’ll be paying numerous tax bills.  However, the numbers on those bills will be significantly less than it was when before you incorporated. 

You will be filing paperwork for two taxes – the corporation’s and your personal taxes. As your earnings increase, you’ll save even more with a corporation.