Posted 3 years and 4 months ago
You may be taking that scary next step in your professional life when you are developing your work into a full-fledged business. Finally . . . something that you can see growing and prospering and making a name in the business community. That is a proud moment but it can be a very intimidating one as well.
You have acquired the skill and you have the products and you have developed a terrific customer list. You’re almost ready to hit the road. One other thing you should probably give some thought to is incorporating. Its not hard to do, and it requires only modest and reasonable attention and it can be a big source of protection and peace of mind.
You’ve probably already done much of what is necessary in formalizing the effort. You have probably picked an available name. You already know your purpose. You know the owner participants. You know what you will start with as an investment, you know what your assets are and you’ve got a good accountant.
With this in mind, you can establish your business as a corporation (probably a Sub-section "S" corporation registered with the IRS which protects you but still allows you to be taxed as an individual). You can even fill out the forms on line for most registrations. It is recommended that you some direction from an attorney, but if you don’t ask an attorney to prepare the documentation, you should be sure to ask one to help you with the completion of your corporate records, minutes, and issuing stock certificates. You should also get advise on entering leases and negotiating contracts. It would be re-assuring to have an attorney that you could run things by periodically also.
A corporation can protect its owners from liability and often can provide tax benefits as well. Its important that you begin now to protect yourself from loss of what you’ve worked so hard to build up. A corporation is not a complete veil of protection in every instance, but it is a good vehicle in transporting your business to where you want to take it in the future. It can serve as a good first step and can certainly help in many situations that can threaten a business.
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