Once you have launched a business in Atlanta, you may want to consider incorporating it. There are three general options for doing so, including becoming an S corporation, a C corporation or a limited liability corporation, or LLC. At Kaufman & Forman, P.C., we know the differences among each of these and why you should give incorporation serious thought.
One of the chief reasons you may want to incorporate is because it can protect your personal assets. Through separating the business from your personal life, you can ensure that if your company is sued, you will not lose at item such as your house in the claim. Entrepreneur magazine warns, however, that to ensure the protection of incorporation, you must always keep business and personal separate. Sign contracts as a representative of the company, and not as yourself. Do not personally guarantee a business loan.
Another advantage to incorporation is that you can retain tax flexibility. For example, an LLC is taxed the same as a sole proprietorship, though you do not have to worry about personal liability or a corporate tax (unless you choose to be taxed as a corporation).
Lastly, many people believe that adding “LLC” or “Inc.” to a business name adds a sense of credibility and legitimacy. If you regularly do business with other companies, you may be more appealing because you have incorporated.
To truly understand how taking these steps can benefit you, it is important to work with a professional who can analyze your situation and make suggestions. For more information on this topic, please visit our page regarding business structures.