5 Reasons Entrepreneurs Should Incorporate
BizFilings Helps Small Business Owners Realize Benefits of Incorporation
MADISON, Wis. (March 16, 2010)
As the government ushers in a new era of small business
growth in the US, many entrepreneurs are looking to kick-start their dreams by starting small
businesses. But with great rewards come great risks—without proper protection, entrepreneurs
run the risk of losing their car, home and personal savings. And while hopes are high that more
loan money will soon be available for small businesses, it could be some time before the market
improves. Though these challenges may seem daunting, BizFilings, a company dedicated to
helping entrepreneurs and small business owners realize the benefits of incorporation, offers free
resources to small business owners to help make understanding these challenges easier.
"Thanks to the government’s support of small business growth, we're seeing a steady increase in
the number of entrepreneurs contacting us regarding whether or not they need to incorporate to
protect their personal assets," says Karen Kobelski, general manager of BizFilings. "While
incorporation can certainly help small business owners protect their personal assets, this is just
one reason to consider incorporating your small business. There can also be potential tax and
financial benefits to incorporation, which can be critical to small business owners seeking
funding from banks or other sources of capital."
Five Reasons BizFilings Encourages Entrepreneurs to Incorporate:
- Protect your personal assets with limited liability: Corporations allow owners to separate and
protect their personal assets. A properly structured and managed company should provide
owners limited liability for business debts and obligations.
- Gain tax advantages: Corporations often gain tax advantages, such as the deductibility of
health insurance premiums paid on behalf of an owner-employee.
- Raise capital: Capital can be raised more easily through the sale of stock, and many banks,
when providing a small business loan, want the borrower to be incorporated.
- Establish credibility: Incorporating can help a new business establish credibility with
potential customers, employees, vendors and partners. Adding “Inc.” or “LLC” after your
business name can add instant authority.
- Transferability: Ownership in a corporation is typically easily transferable.
Visit BizFilings’ Learning Center for additional guidance on the
benefits of incorporation.
BizFilings is a full-service online incorporation service provider, offering small business owners
a fast, easy and economical way to form a corporation, limited liability company (LLC) or other
business structure online or by phone. BizFilings also offers a full range of business filing and
compliance products, including nationwide Registered Agent service, helping keep businesses in
compliance with state regulations. BizFilings can be found online at www.BizFilings.com.
BizFilings is a part of Wolters Kluwer, a leading global information services
company. Wolters Kluwer had 2009 annual revenues of €3.4 billion ($4.8 billion/£3.0 billion), employs approximately
19,300 people worldwide and maintains operations in over 40 countries across Europe, North
America, Asia Pacific and Latin America.