Incorporation has two main benefits: limited liability protection and tax benefits.
Claims against an incorporated business can only be enforced against the corporation’s assets, and NOT against your personal assets. Your business liability is therefore limited to the business itself. The limited liability aspect of incorporation is a practical requirement for any professional, since business owners can be held liable for the actions of their partners or staff.
The tax benefits of incorporation are generally so significant that incorporation is the obvious choice for any small business. Please see my articles Huge Tax $avings for S Corporations and More Tax $avings for S Corporations: Bypassing the SALT $10,000 Deduction Limit for details. You can also compare tax effects of different corporate entities at my C-corporation vs. S-corporation and Corporation vs. LLC pages.
Advance planning and timing of incorporation will save you time and money. See Naming Your Professional Corporation, When to Form Your Corporation, and my Legal Guide Top 10 Incorporation Mistakes for details. Proper post-incorporation setup and observing the required corporate formalities are also essential – see my Legal Guides Startup Checklist: Corporations and Corporate Formalities for details.
Legal consultation and incorporation is available at an all-inclusive flat rate: filing fees, legal consultation, name availability, Articles, Bylaws, Election of Directors/Officers, Minutes of First Board Meeting, Assignment and Employment Agreements, S Election or Medical-Dental Reimbursement Plan (as applicable), Stock Certificate issuance, regulatory and securities filings, Federal and State tax ID numbers, online or over-the-counter filing, corporate minute book and seal, and all other expenses are included. Rush filing available for additional fee. Corporate dissolutions and annual corporate minutes are also available at flat rates.
If you are considering incorporation, contact me for a free 30-minute consultation to get started on the incorporation process!