The short answer (for most businesses) is yes. Especially if you hire the right small business attorney and get the assistance you need at a reasonable price. However, you may want to know a few of the reasons for incorporating your small business before taking this step.
- Protect your personal assets from liability – Setting up your business as a corporation separates your personal finances from the business. We hope your business succeeds, but if things don’t go according to plan, you don’t want creditors going after your personal assets like your home or car.
- Tax benefits – Self-employment tax is going to take 15% off the top of profit if you set up your business as a sole proprietorship. Because of the way that corporations are structured, you may find benefits when it comes to having the business pay you a salary.
- Save faster for retirement – You are limited to the amount of contributions you can make to your own retirement accounts. However, if you set up a corporation, you can also create a 401(k) that will allow you to grow your account faster than just having an IRA.
- Retained earnings – Sink business profits back into the business, rather than pulling from your own income. This is another way to reduce your tax burden while still growing your company.
Incorporating Your Small Business Affordably
You may want to incorporate, but that doesn’t change your budget. At Pokala Law APC, we understand the needs and budgets of small business owners. Contact us today at 1.844.695.1487, or you can request an appointment online.