You run a small business in Ohio, and things are going well. You can make payroll for your few employees, keep the inventory stocked and pay yourself too. Friends have recommended you should incorporate your business, but why? Things are good.
It certainly is something to consider.
Incorporating isn't just for big, high-dollar business. There are benefits for businesses, both old and new, of all sizes.
Here are a few of them:
- You can protect your personal assets from business debts. You won't lose your house, for instance, because you defaulted on a business loan.
- You can't be sued for your personal assets for a judgment against your business, such as if someone were to fall and get injured at your site.
- More tax breaks are available to incorporated businesses.
- Raising capital or applying for a loan is easier.
- Should you decide to sell your business to retire, for example, it's more attractive to buyers.
- Your business is more credible in the eyes of prospective customers.
- Your intellectual property is protected. Your business name is protected, as are logos, slogans and trademarks.
- Your business exists in perpetuity. One of the benefits is that investors will know the business can go on even if you're not involved.
- It is easier to pass the business to your heirs.
- The business can continue to grow and thrive when you pass away.
These are 10 pretty compelling reasons to incorporate - and there are more. An Ohio attorney experienced with business law can fill you in on the rest and inform you about the incorporation options available for your situation.