The Benefits of Incorporating

The Benefits of Incorporating

Incorporating your business offers a unique mix of benefits, many of which are unavailable to informal business structures such as sole proprietorships and general partnerships. If you are looking for tax flexibility, limited liability, and the option to raise capital, incorporation may be the best path for you. The following are four of the major benefits of incorporation:

1. Increased Credibility

Being recognized as a corporation proves to creditors and potential clients that your business is organized according to state law. By simply adding “Inc” or “LLC” to the end of your business name gives you the professional look and credibility that many customers are looking for.

2. Tax Benefits

Corporation owners are able to deduct many more expenses than those who own informal businesses. These write-offs can be substantial since insurance, travel, and entertainment are deductions. Corporation owners are also free from paying certain self-employment taxes, which informal business owners must pay.

3. Asset Protection

In the event that a corporation becomes unable to pay its debts, the owners are given limited liability status. This means that their personal funds or assets cannot be collected in order to pay business debts. In the event legal proceedings are brought against the corporation, the owners’ personal assets are protected.

4. Perpetual lifespan

If your business is incorporated, it will not be forced to dissolve due to changes in ownership. The transfer of ownership is typically accomplished through the simple sale of common or unrestricted preferred stock or by membership interest transfers. Informal business structures are not perpetual entities, so in the event that an owner dies or wants to sell, the business typically ceases to exist in its current form. Being a perpetual entity makes it easier for incorporated businesses to get bank loans and to attract investors.

Why Choose Swyft Filings for Your Incorporation

Thorough Review of Your Information

We’ll take care of the administrative work, but you’ll still need to provide information on your company. Once we have this information, we’ll carefully review it and ask for any corrections or clarifications before sending it out for state approval. 

In-depth Business Name Availability Check

Your new business needs a name that aligns with specific requirements and restrictions. We’ll complete an in-depth name check to ensure your desired name is available in your state before sending your documents for approval.

Document Filing and Approval Notification

After we’ve received and reviewed your information, we’ll complete all the necessary paperwork required to incorporate your business successfully. We’ll send it directly to the state on your behalf and inform you immediately when we receive your business’s approval.

State Approval Document Forwarding

We’ll immediately notify you when your business is successfully incorporated and mail you copies of your approved incorporation documents. 

Reliable Compliance Support

The journey doesn’t end at incorporation. You’ll need to take certain steps to stay compliant, and we’ll be more than happy to assist you.