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Incorporate a business is the forming of a new corporation or a new company. Incorporating a business means making a corporation being a legal entity that is effectively recognized as a person, albeit a fictitious one, under the law.
With the advancing world of business and internet, now setting up a new business is becoming easier and easier. Services are available in the internet. They get the information, they file the paperwork, and they follow up on the filing to ensure completion.
Incorporating your business brings many advantages. One of the primary reasons why small businesses become a corporation is liability protection of personal assents.
If you want to set up a corporation or limited liability company in any state, there always laws you have to follow. Once a corporation is registered (can be by an individual or multiple partners), both the federal and state governments have determined that a unique situation occurs. It can be treated independently for tax purposes, separate from the people who own, operate, or control the corporation.
Basically by incorporating your business, you will get these advantages:
- Limited liability protection for shareholders.
- C corporation can grow to unlimited size.
- Only 1 shareholder required to start.
- Required to hold annual meetings and record minutes.