Quick Incorporate

A corporation is a designated entity where the company and the individuals related to it, have different legal identities. The reason most companies prefer to incorporate is asset protection. Incorporation protects your personal assets from seizure during a lawsuit.

If you decide to incorporate your small business, you can choose the S corporation, C corporation or LLC model. Before choosing any kind of corporate model, you should look at the tax rules and regulations related to a corporation. Read the rest of this entry »

As a general rule, you can incorporate your business with no tax cost as long as you contribute all of your business’s assets and liabilities to a corporation you control.

A sole proprietor who incorporates his or her business, therefore, should be able to incorporate tax-free. So should a partnership. And a limited liability company that makes an election to be treated as a C corporation or as an S corporation should also be able to make these “incorporation” elections tax-free. Read the rest of this entry »