Setting the Record Straight on Incorporating Your Business
A brand-new business venture brings with it a variety of emotions – excitement, enthusiasm, and passion, but also uncertainty, fear, and hesitancy. After your venture has an established foundation and gains some traction and momentum, it may be time to start the process of incorporating your business.
You spend business hours (and often early mornings and late nights) creating product, establishing a supply chain, marketing, interacting with customers, and completing many other tasks, so researching the requirements for incorporation will likely be low on the priority list. Unfortunately, there are myths and misunderstandings regarding the legal implications for small businesses. This can cause a delay and perhaps even prevent business owners from pursing incorporation.
There are a few foundational principles to remember when considering the process of incorporation. First, it does not have to be complicated. There are incorporation service companies you can hire to help with proper preparation and filing of documents for incorporating your business. While some small business owners complete the incorporation process on their own, there can be a greater risk of error if you do the work yourself, because the daily responsibilities of your business will generally naturally consume most of your time and energy.
Second, it does not have to be expensive. Any funds spent to legally recognize your small business will often be well-invested monies. Incorporation can be a wise and worthwhile investment that boosts the overall stability and growth of your business. Although legal formation results in annual compliance fees, you can receive tax breaks and your risk of being audited may be much lower.
Third, it is not required. You can run a successful small business without being incorporated. That said, incorporating your business may be the smartest professional move for a growing enterprise. There are many benefits, including the fact that official legal formation increases your credibility with customers. You can separate your personal assets from your business assets and safely protect both. If you desire to establish investors, providing a formal business structure gives clarity to where, why, and how their capital investments will be used.
Finally, it does not have to be time-consuming. Your time is inevitably stretched thin as an entrepreneur working to establish and grow your small business. The process of incorporation can be daunting and seemingly not worth the time and effort that must be spent on the required research and paperwork. Find a filling service company that assists startups to help make the process easier.
If you are considering incorporating your business, look for a company that specializes in this area to help you. This will allow you to get back to the work of running your organization!