The answer is: maybe.

Incorporation has some major advantages: primarily, a corporate entity is a “person” in common law, which means it can sue and be sued on its own, and if the corporation is bankrupt or subject of a lawsuit, it, NOT you, is responsible to pay the bills.

What does that mean?

If you are at all concerned about your business being subject of a lawsuit of any kind, or going bankrupt (that is, running out of money to pay creditors), then you should consider incorporation.

Incorporation has some negatives too: extra fees to establish and maintain, plus a fair amount of ongoing paperwork.

And since a corporation is considered a legal “person”, how do you think the tax revenue people view it?

That’s right: a corporation has to pay taxes all on it’s own. Fortunately corporate tax rates tend to be low in most jurisdictions. But you will have to file a tax return for your corporation, and you will have to pay taxes on corporate revenues, and then pay again out of the revenues that are paid to your own account.

Take a look at the free law video series at http://www.LawCookies.com. I’m posting the first of three here to give you a taste . . .

Learn more about Incorporation http://nextstepjobsearchers.blogspot.com/?zx=593783715aeb3258

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About C. Blogger

A brand-new Entrepreneur-In-Training, looking to launch a (successful!) business in 2014. . . Watch me face-plant my way to success!

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