Who Should Incorporate?by Robert Kowalski
Doing Business The Right Way
In today's complex and competitive world there is no greater way to protect yourself and your personal assets from the threat of lawsuits than by incorporating, whether you're a small business owner with no employees, or run a serious business establishment with hundreds. Incorporating is also a simple and legal way to cut your taxes, protect your privacy, lower your audit risk, raise capital, and much more.
What is a "corporation"? Simply put, a corporation is a legal "person" created by state statute that can be used as your "shadow" for the purpose of running a business, or several businesses. This is a "person" whom you control completely, yet cannot be held accountable for its actions. Indeed, it is a powerful concept! For that reason roughly a million of corporations are formed each year, and that number is growing from year to year.
In other words, establishing a corporation can provide a simple and inexpensive foundation if you operate a business, contemplate starting a business, wish to protect your personal assets or are thinking about estate planning. It is true even if you have or plan to have a home based or part-time business!
How Can Incorporation Help Protect Assets?
We all know that in the United States the risk of a law suit is quite high, or, in other words, people love suing other people. Statistics show that an average person in the United States today goes through five lawsuits in his or her lifetime, with at least one being devastating.
Sheltering your assets from lawsuits is possible, and you must do so before a lawsuit strikes. In today's world of political and financial interests, every person is vulnerable, including yourself, and you must recognize and come to grips with that reality. Only then will you have the sense of urgency necessary to take action to protect yourself and your assets from the virtually inevitable.
REMEMBER: The law deals quite harshly with those who seek last minute transfers of assets in an attempt to defraud creditors. That means its important to realize NOW that you might run into financial problems in the future, and take appropriate action to protect your assets, while at the same time enjoying the benefits of lowered tax liability.