Frequently Asked Questions
What are the benefits of incorporation?
The main reason to incorporate is to minimize your personal liability. Once your business is incorporated, it exists as a separate business entity. Essentially, you put a wall separating your personal assets from anything in the business.
When is the best time to incorporate?
In most cases, it’s best to incorporate or form an LLC as soon as possible. After all, the main benefit is liability protection and by waiting to incorporate, you can be exposing yourself to liability.
What Are Some Examples of Why I Would Need a Corporation?
If you want to build your business credit separate from your personal credit, having a separate entity as a corporation is an excellent idea. Also, if you plan to seek funding, investors will more than likely require you to have a corporation, because they don’t want their own assets to be at risk.
Do I need a business plan if I’m not seeking financing?
For your small businesses to succeed, you need to know where you’re going and how you’ll get there. Creating a business plan forces you to set goals, determine the resources you will need to carry out your plan, and contingency plan.