photo credit: b3nscott
Most people make the mistake of thinking that forming a corporation or incorporation is extremely costly and only for large business’. This is not true, forming a corporation is cheaper then ever right now and small business’ are urged to form one as well as large business’. But there are a few key points to stay away from when forming a corporation as talked about on Entrepreneur.com.
â—Incorporating before you seek the advice of a reputable CPA.
â—Setting up your incorporation, but failing to get the proper licenses before you start doing business.
â—Making the mistake of thinking that the corporate veil gives you unlimited liability coverage.
â—Setting up your incorporation without having the proper sufficient capital to back it.
â—Failing to file periodic taxes required by your state and federal laws while operating under an incorporation.
Generally, incorporation is the best form of business for the small-business owner–including startups. The advantages in terms of personal asset protection, credibility, taxes, ability to finance operations and the enduring nature of the corporate entity far outweigh the disadvantages–but only if you plan properly.
What suggestions do you have to offer for forming a corporation/incorporation?