Bundle up for Financial Winter
Times are hard why should I incorporate my small business now? The simple answer is, peace of mind. First, you should ask “what is my liability picture?” second “do I have assets that I wish to protect?” and third, ask yourself what are the corporate tax benefits of incorporation. Anyone who is involved in a profession where they interact with people, clients, or businesses should incorporate. If a deal goes sour, or if a mistake is made in handling a customer’s order, then the first reaction today is a lawsuit. Today, even frivolous lawsuits are dangerous.
Of course, anyone in a potentially hazardous industry, such as contracting, excavating, long haul trucking, heavy equipment operation or the like are great candidates for incorporation. The potential for personal liability from harm to people working for the company, innocent bystanders, or those looking for a quick buck is huge in these types of businesses.
People who are involved in joint ventures or partnerships should consider incorporating a business. If you are in a partnership with a person and that person does something that gets the partnership sued, your personal assets are on the line as well as theirs. By contrast, if the business were a corporation instead of a partnership, this would not be the case, this is one example of the intrinsic liability protection a corporation provides.
