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Why should I incorporate my business and what are the benefits?
One of the major benefits is limited personal liability. If your business is properly setup as a corporation and you don’t personally guarantee your corporation’s obligations, your corporation will be responsible for its own obligations and not you. One of the biggest reasons people incorporate their business is to protect the personal assets of the owners and shareholders/stockholders of the corporation. If you operate your business as a Sole Proprietor or Partnership you or the partners are personally liable for all debts and obligations of the business such as business loans or if the company is sued. If the company is sued and you are operating as a Sole Proprietor or Partnership your personal assets are at risk. If you are sued as a corporation, your personal assets are protected. Other benefits of incorporating are; corporations are taxed at a lower rate than individuals so you have a lower tax liability, you lower your risks of an IRS audit and your corporate identity shows the company as stable and credible which will allow you to seek money from investors. Whether you are a Salon Owner or Booth Renter/Independent Contractor you should incorporate your business.
To incorporate you independent beauty business for a low cost, go to www.mycorporation.com or contact Ivory Mims @ IMG Financial Services and incorporate today!!
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