The process of incorporating a business can be rigid, time consuming, and full of paperwork and legal maneuvering. It is also subject to a lot of oversight and regulation. However, the benefits of incorporating are more than worth it, if it’s the right type of move for your business. Incorporating distinguishes the business from its owners, making it a separate entity. Here are a few things to know before taking deciding if it’s the best thing for your business:
Whether or Not It’s the Right Structure for You
When you incorporate your business, it completely changes the dynamic of how it is operates. By doing so, you will be setting yourself up for raising capital and bringing in shareholders. But it should be noted that with that comes added scrutiny to your company, how you run it, as well as creating accountability which you did not have to deal with before.
Understand the Gray Areas of Personal Assets
While many people incorporate to protect their personal and financial assets from liability, it’s not always so cut and dry. If you use a personal credit card to purchase business assets, or you guarantee a company financial agreement with your personal credit, the lines between personal and corporate become blurred.
Determine the Best State in Which to Incorporate
Each state has different legal requirements and regulations for corporations. If your company does business across multiple states, you may want to consider which one is friendliest towards your industry. That’s why having a legal advisor to assist you can make such a big difference.
You always want to make sure that whatever decisions you make for your business are in its best interests. This is not only for the sake of the company itself but also for you and your family. Incorporation is a very important step in growing and protecting your business. It is best to leave it up to the experts who know that they are doing. At Bell and Shaw, we have years of experience in this arena. Contact us today for a consultation or to find out more about our services.