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Monday, 18 September 2006 |
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Incorporating allows a business owner to protect their personal assets in case the company goes under. The corporation will be responsible for any losses or lawsuits and those suing normally won’t be able to go after the owner of the company. Incorporation gives the business an advantage over non incorporated business because now the incorporated business seems larger. A company that has inc. or co. behind their name seems to get more respect from others.
Incorporating a business can help from a tax standpoint and an expense standpoint. A company that incorporates can use anything that is purchased for the business as an expense against any income. These expenses reduce the income a company has to pay. An incorporated company can also expense the salary that is paid to the owner along with any income taxes paid on the employee’s behalf. A corporation can be a one man show but to the public seem like a multimillion dollar company that employs hundreds of people. Corporations tend to get better deals and discounts in areas such as equipment, automobile leases and purchases, as well as a host of other things. Incorporating opens up more opportunities for the business owner. The business owner may notice that instead of having to constantly call different places to obtain credit, loans, and products, these companies will start calling the business to ask if the business needs anything. Most corporations don’t need to solicit things such as office supplies but they do need to show potential customers that they are a legitimate company who won’t disappoint once they earn their business. |