Mon 19 Oct 2015 | By:

5 (Secret Squirrel) Reasons to Incorporate a Business

5 Solid Reasons to Incorporate a Business

Once you’re through devouring this article, satisfied you’ve squared away enough reasons to incorporate a business, I’m hoping you visit IncFile and take the leap.

No faith required. No need to possess a special set of skills either. Even if you’re just starting out thanks to modern technology and a few dashes of internet you can incorporate your business inside the next 60 days at a mere fraction of the cost your ancestors had to shoulder.

Full-Disclaimer: Incorporating a business isn’t 100% peaches and cream for every startup circumstance under the sun. However, for the vast majority of entrepreneurs basic IncFile packages should more than suffice.

If you’re anything like me, then incorporating your business should prove to be among the smartest and wisest decisions you’ll ever make. You can still operate a business without having it incorporated, but over the long-term it just isn’t viable.

That said, let’s dive in.

1) Incorporating a Business Builds Street-Cred

Both Wall Street-style and Main Street credibility with average consumers of all kinds. Once incorporated, perceived value levels shoot upwards. We consumers immediately believe you’re a more legitimate operation, officially recognized by state and federal government agencies to conduct business.

And how is that message conveyed? Through the abbreviation of your legal structure after your brand name: Inc., LLC, and Co. are common examples.


2) A Business Entity Safeguards from Liabilities

Without incorporating, you’re putting yourself (and your family if you have one) at risk of lawsuits and allowing creditors to reach personal assets if someone sues or trouble arises. After incorporating, in the eyes of the law your business becomes a separate entity with its own legal rights and transactions.

These days, just as it’s always been, business people need to safeguard themselves and their personal assets so they don’t end up broke or worse.


3) Ensures the Continuation of Your Business

What this means is that if something terrible were to happen to you, as a business owner or partner, the business itself would be able to keep its doors open. On the other hand, how many small startups without incorporation would be completely out of business should the owner chase a Pokémon off a cliff?


4) Provides Tax Incentives

Incorporating your business can save you a lot of money! An incorporated business has many tax deductions that come from operational costs including employee salary and benefits, production costs, advertising costs and many others.


5) Establishes Centralized Command and Organization

Incorporated businesses follow a well-defined organizational hierarchy, where every position has a clear description and scope. Authority is passed from the Shareholders, to the Board of Directors and to designated company officials. Decisions are not manipulated but are fairly discussed by all concerned parties.

Unincorporated companies don’t have this structure and important calls can be manipulated and made by someone other than the owner/partners. Abuse of power and disruption of company operations are likely to occur.


Online Incorporation vs Hiring a lawyer

Wrapping Up and Funding a Business

If you have a good business lawyer in your pocket who owes you a big favor, or you happen to be a lawyer yourself then great!

Otherwise it all comes down to money. Online incorporation providers like IncFile do everything you don’t technically need a lawyer to do, but keep in mind they aren’t a legal office. They’re a for-profit company.

But IncFile is just the most popular option, there are others (competitors) who also offer affordable package options for entrepreneurs.

Scurry Past the Hustle

Startup Savant wouldn't steer you wrong. The reason we're such big cheerleaders for IncFile is because they've helped so many ambitious people within our readership/community.

The very least you can do is head on over to their site while you're in the groove and see what they have to offer. Should you decide to make big moves today, they can get tons off your plate inside 48 hours.

Visit IncFile Or IncFile Review

About Ryan James

Half hardworking hermit, half avid adventurer, Ryan founded Startup Savant to simplify entrepreneurship and pay it forward by donating a portion of all revenue to support children's education via