Incorporating a business is a relatively inexpensive, fast process that ultimately results in less taxes for a company. Anyone who operates his or her own business - whether that may be running a convenience store or offering services such as a doctor or lawyer would - can incorporate
According to Jim Nellis' article in AllBusiness, incorporating a company is one of the most effective wealth management decisions available to a small business owner or professional.
"That's because incorporation
lets you defer a substantial portion of your income tax and charge expenses more efficiently against your income," Nellis wrote for the source.
"It also provides some capital gains benefits as well as broader liability protection," he added.
Once incorporated, a small business will see tax benefits. The income tax on a small business is far less than a personal income tax rate, according to the source. Any money left within the corporation will be taxed at a rate far lower than if a business owner had earned it personally. However, one should be wary - if the funds are withdrawn from the company, then personal income taxes will be paid on them.
This article is brought to you by Vcorp Services
– offering registered agent services
to businesses nationwide. Providing a physical address to accept service of process
on behalf of your corporation, Vcorp’s registered agents can handle all of your company’s statutory representation
Vcorp Services assists in the creation of new businesses and helps maintain existing businesses in
all 50 states. Quick, accurate and at the lowest rates, Vcorp's knowledgeable and experienced staff
has helped form thousands of new businesses including: LLCs, S-Corporations, C-Corporations,
Partnerships, Non-Profits and Professional Corporations. Vcorp works with entrepreneurs, legal and
tax professionals, as well as real estate experts to set up and maintain businesses across the
country. Vcorp also specializes in helping small businesses to get started, grow and remain in
compliance with federal and state regulations.