Why Incorporate?
A well-incorporated and well-run company can limit the personal liability of its shareholders. Corporate assets may be at risk, but personal assets will generally be treated as separate. However, keep in mind that the Court does not automatically remove liability for criminal and negligent acts on the part of the company’s officers, directors and shareholders.
Incorporation can help limit your personal liability as a business owner. In general, creditors of your corporation must satisfy their claims by seizing the assets of the corporation rather than your personal assets. In contrast, as a sole proprietor or partner in a partnership you are financially responsible for all liabilities of the business, and your personal assets are subject to seizure or lien by creditors.
Other benefits of incorporation can include greater tax deductions for health insurance and medical expenses, lower payments for social security tax and Medicare tax, and greater opportunity to raise capital for the business through the issuance of stock.
How do I form a corporation or LLC in the state of my choice?
The formation of a corporation or LLC is not a difficult process, and in most cases, it can be accomplished quickly and efficiently by a professional incorporating service, such as ActiveFilings.com. As your agent, we will investigate the availability of your proposed corporate name and reserve it for you. Next, we prepare a Certificate of Incorporation. All state filing fees are paid through ActiveFilings.com to the appropriate state agencies.
