Menu Close Menu

Why Not Incorporate?

Posted by Attorney Stephen Hance | Aug 21, 2013 | 0 Comments

Why form a business entity anyway? After all, you can run a business under your own name. From a lawyer's perspective though, it is always best to incorporate. Here's why:

First, if you form a corporation or LLC, you can protect your personal assets from creditors or other liabilities of the business. So if someone sues your plumbing company when a pipe you installed breaks their head open, you don't have to worry about losing the cabin to cover the loss.

Second, you get a level of name protection in forming a business, so if someone starts using your business name, your incorporation documents may be good proof of your ownership and/or prior use of the name.

Third, properly formed businesses can have perpetual existence. So if you or your partner dies, the business can continue operating and will not have to be dissolved.

Finally, there could be tax advantages. For example, in a corporation, the ability to determine and deduct owner salaries may enable the owners to take other distributions at a lower tax rate.

About the Author

Attorney Stephen Hance

Steve represents and advises clients that are dealing with business and real estate disputes. Steve is an investor and business owner, and his approach is unique from other attorneys.


There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment

Hance Law Firm, LTD

Today's businesses face an uncertain climate and more than ever need effective, knowledgeable counsel to help guide them to success. The attorneys at Hance Law Firm take pride in the comprehensive and reliable legal counsel they provide to their clients.

Contact Us Today for a Free Consultation!

Are You Being Sued? Do You Have A Business Dispute? Need General Legal Counsel? Do You Need Local Counsel? Contact Hance Law Firm, LTD today!