Small Business
The first step you need to take when you decide to start a company is to determine if you should incorporate your business. Fortunately, deciding whether or not you should incorporate your business is not that difficult, you just have to ask yourself why you should join. By answering questions honestly, you will determine whether an incorporation is right for your business needs, but you will also be able to determine what form of business is best suited for your business.
The main reason people choose to incorporate their business is to get protection from any debts and obligations incurred by the corporation. Business owners do not want to be personally responsible for any debts or obligations arising from their business, so they choose a corporate form of business because the corporation is considered a separate legal entity; they are responsible for themselves.
If this is your reason for starting a company, you may want to think twice about forming a company for your small business. The reason for this is that the liability protection that the company provides does not work for all of them. For example, if you have an employee involved in an accident where someone is injured while they are shipping something to work, your company could be held liable through liability representation, although your personal assets will be protected.
One of the advantages of incorporating your small business is that you can gain an increased reputation for your small business. Often times, just entering "Inc." or “Corporation” after your name, your business ventures will be treated with more respect. You can also get some tax advantages by forming a company, but not all small businesses will be able to benefit from this.
The important thing to remember is when deciding whether incorporation is the right move for your business; You will want to talk to your attorney and accountant so you can get all the facts before making a decision.