What is Business Incorporation?
As mentioned above, business incorporation is a loose umbrella term that covers a variety of options for legally structuring your business. These options include becoming a limited liability company (LLC), corporation, S-corporation, non-profit 501(c)(3), cooperative, and so on. Whatever business structure you choose needn’t be set in stone, and can be changed as your business matures. For example, many small business owners start out as sole proprietorships or partnerships with formal incorporation taking place at a later date. Of the many business entities that owners consider, LLCs and Subchapter S Corporations (S-Corps) are two of the most popular. Read “Should My Company be an LLC, an S-Corp or Both?” to determine which features are most important to you and your company. The Benefits of Incorporation Here are some of the benefits you can realize if you decide to incorporate your business: • Personal Liability Protection – An incorporated company affords protection from any person
