Most small business owners will face this question at sometime in their careers: Should I incorporate? If so, do I use a lawyer or a web site? INC or LLC? What, exactly, are the benefits to incorporating?
If you think that, by incorporating your small business, you’ll enjoy some form of tax benefit, think again. We talked to one attorney who told us that there is little to no tax benefit to incorporating. So don’t think of a corporation as a tax shield, but do think of it as a legal shield.
By incorporating, you protect your personal assets from any legal danger your company might fall into. If you run a high risk business, or are likely to be sued, definitely check out incorporating.
Another time you may want to incorporate is if you have partners. You’ll spell out exactly who owns what, and who owes what.