Starting a business comes with countless decisions you hope to get right. There is one decision that is a no brainer… Forming the appropriate entity as the foundation. While entities open the door to several benefits, today we’ll explore three that no business owner should leave on the table.
Legal Protection –
Most entrepreneurs risk personal funds to start a business and it’s crucial to separate and protect hard earned personal assets, such as a home or car. Forming an entity (LLC, C-Corp, and S-Corp) significantly limits liabilities associated to the business and provide protection to the owner(s) personal assets from being used to pay business debts.
Tax Advantages –
According to the IRS, 9 of 10 business owners overpay on their taxes each year. Entities often help business owners, through deductions, gain significant advantages that reduce tax obligations each year. There are hundreds of qualified deductible expenses that can be used to lower your business’s taxable income.
It goes without saying that consumers prefer to purchase goods and services from reputable businesses. Forming an entity and operating under a legitimate business name will increase the credibility of the business.
Regardless if you are self-employed or have 100 employees, the benefits associated with an entity typically outweigh the disadvantage and entrepreneurs will often make the mistake of thinking it is too costly or time-consuming to do so. Neither of the aforementioned reasons is true and Prime Corporate Services is here to guide you every step of the way if you need it.