Why INC/LLC?

We have listed TEN GOOD REASONS to incorporate.

1. Limited Liability of Shareholders. (Asset Protection)
   Corporations are separate legal entities. They carry the advantages of protecting their owners from legal liability; if you operate as a sole proprietor or partnership, there is virtually unlimited personal liability for business debts or lawsuits. Incorporating your business will separate your personal assets from the business assets as long as assets are not commingled (treated as the same). Today we live in a sue happy world. If sued Sole Proprietors file bankruptcy, close the doors on their sole income and losing their personal assets, but if you are a corporation you are.

2. Free transferability of ownership
   Corporations are generally much easier to sell and are usually more attractive to buyers than either a sole proprietorship or partnership. The reason for this is because a new buyer will not be personally liable for any wrongdoings on the part of the previous owners. If someone buys a sole proprietorship, for example, the new owner can be held personally liable for any mistakes or illegalities on the part of the prior owner even if the new owner had NOTHING to do with the situation! This is usually NOT the case with a corporation.

3. Perpetual duration
   Men may come, men may go, but the corporation lives forever unless it is dissolved. When you incorporate you create a separate and distinct legal entity. This separate and distinct entity (the corporation) can endure almost forever irrespective of what happens to the shareholders, directors, or officers. This is NOT the case with sole proprietorships, partnerships or even limited liability companies. For example, if an owner, partner, or member dies the business AUTOMATICALLY ends. Corporations, on the other hand, have unlimited life.

4. Tax Savings
   When you incorporate there are numerous tax advantages at your disposal that are virtually impossible to accomplish with other business entities. When you incorporate you create a separate and distinct legal entity. Because of this, there are many transactions that you can structure between you and your corporation to save big money on taxes. You are prohibited from doing this form of structuring, if you are a sole proprietor or a partner in a partnership.

5. Privacy and Confidentiality
   The corporate form of business is a great way to keep your identity and business affairs private and confidential. If you want to start a business, but would like to remain anonymous, a corporation is the best way to accomplish this. States such as Nevada offer even more privacy protection for corporations and their shareholders.

6. Easier to Raise Capital
   When you're looking to raise money through investment or borrowing, a corporation can actually make finding and getting the money you need easier. If you want to take on investors you simply sell shares of stock. If you want to borrow, a corporation can add clout when dealing with banks or other lending institutions.

7. Increases Credibility
   Most people feel more secure and confident dealing with a corporation as opposed to a sole proprietorship. Having INC. or CORP. after your company's name adds a touch of professionalism and credibility to your business dealings. B-to-B transactions are much easier than dealing with B to Sole proprietor.

8. Estate Planning
   Estate planning is possible with a corporation and their by avoiding estate planning of your family by including the family in the business with proper planning.

9. Very short registration period
   Registering a corporation involves very short duration when compared to the life time benefit reached by a corporation.

10. Building of a new credit history
    Even if you have a bad credit history or issued Bankruptcy in the past you can still start a corporation with a new credit history.