All new entrepreneurs have the choice of incorporating or not. By not incorporating, you’ll get out of some hefty paperwork, though you’ll be missing out on some great benefits that come along with incorporating your business. If you are a small business owner and you haven’t gotten around to incorporating yet, here’s what you’re subjecting your business to:
A lack of trust from customers.
Your customers want to know they are giving their business to a legitimate, professional establishment. Having an Inc. or LLC at the end of your business’s name helps make your customers feel comfortable with you. Without it, you may receive some skepticism.
You’ll miss out on tax savings!
When you incorporate, you can save up to 50% on taxes. When you’re a small business owner, you want to save everywhere you can, especially when just starting out. Use that money for growing your business in other ways. You also have less of a chance of getting audited when you incorporate.
Your assets won’t be protected.
Most importantly, incorporating protects your assets. This means that if your business ever falls into debt when you are not incorporated, your house, car, and other personal assets may have to be sacrificed as payment. When you incorporate, your business becomes a separate entity from the business owner, so if your business falls into debt, only the business owes money, not you.