Do I Really Need to Form a Corporation or Limited Liability Company?

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The answer to this question is an emphatic YES! You need to figure out whether your business fits better in the structure of a Corporation (for-profit or nonprofit) or a Limited Liability Company (LLC) and then operate within that structure.

Here are 3 major benefits you get from creating a Corporation or LLC:

  • Owners are protected from personal liability from business debts, judgments, injuries, and breaches of contract;
  • It is easier to attract investors. As a sole proprietor, you can’t give away pieces of your businesses because by definition you own it all. If you want to raise capital, forming a corporation and having shares to sell may be your best option; and
  • Corporations and LLCs are eligible for business tax credits, which can save you lots of money when it comes to filing taxes.

If you’d like more information on the subject, check out this webinar: Get Legal! Choosing the Right Legal Structure For Your Business. The webinar will explain the differences between Corporations and LLCs in a clear and succinct way and by the end, you should know which entity you need to form.

 

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About author:
Asha Wilkerson is the founder of The Wilkerson Law Office, P.C. Ms. Wilkerson provides skilled advice and counsel to for-profit, non-profit, and faith-based organizations in the areas of business and employment law. Her mission is to preserve the longevity of your business by ensuring that every aspect of your organization is legally sound and operating in compliance with state and federal law.

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