If you’re considering turning your small business into a corporation, there are certain benefits to expect when it comes to taxes, liability, and company operations. Though incorporation isn’t the answer for every business, it’s good to be familiar with the benefits from the start so you can maximize your company’s potential for future growth.
Incorporate Your Business for Possible Tax Advantages
Tax benefits are the main reason many companies decide to incorporate. A corporation enables you to accumulate your wealth and assets with special tax rates meant for corporations. These rates are a bit lower than tax rates for individuals. Also, when you own a small business and do not incorporate the business, you must pay self-employment taxes (including social security tax) along with regular income tax, either quarterly or in one lump sum. Operating as a corporation enables you to set up a payroll structure similar to working for someone else, where these taxes are taken out of your paycheck little by little on a regular basis.
Corporations are able to deduct many operating expenses without restriction. They can also split income with...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
