Top benefits of incorporating your notary business

notary business setup Oct 04, 2021

Top benefits of incorporating your Notary business

One of my most popular blog posts is this one, which is about the top benefits of incorporating your business. Here are some of the benefits of incorporating your business, which most entrepreneurs don't think about, but should.

 

The Advantages of Incorporating Your Business

 

The advantage of incorporating your business (and it's also one of the things that stop many new business owners from taking the leap) is that it can help you manage your assets more efficiently. The valuation and taxation of your business are generally much simpler than if you were running it as a sole trader and under UK tax law, you may be able to structure your business as a limited company (like the web-hosting company I own), which means you pay less tax.

 

You may also be able to invest in some of your shares for the first time since the share price will be based on the value of the company (and a lot of companies are share-based, which means you don't pay any tax on the money you invest).

 

Tax Advantages of Incorporating Your Business

 

As an owner of a business, you're responsible for paying taxes. That's part of the responsibility that comes with ownership. And most small businesses aren't profitable enough to pay the state and local taxes they're required to pay. So it's vital to incorporate as a legal way to keep more of your hard-earned income for yourself, and not have it taken away by taxes.

 

Lower Legal Expenses

 

As your business grows and develops, the legal costs grow too. Most companies and small businesses simply can't afford to pay for the lawyers and accountants they require, so they do a lot of work themselves. They cut corners, which leads to errors and legal problems.

 

Other Benefits of Incorporating Your Business

 

I've often used the phrase "Incorporation Makes Your Business Better." Because it does. Here are some additional benefits that you may not know of.

 

Related: 5 Reasons You Should Incorporate

 

Benefits of Incorporating Your Business

 

Related: The 4 Big Benefits of Incorporation

 

Related: The Most Commonly Asking Questions About Incorporation

 

Need more convincing to incorporate? Here are some additional benefits to consider.

 

Related: The Advantages of Sole Proprietorship

 

Is Incorporating the Right Idea for Your Business?

 

Yes. But here are some reasons to consider incorporation before you jump into the "quick" route.

 

Legal protection for your business and personal assets

 

Whether it's a limited liability company, limited liability partnership, or sole proprietorship, you'll be safeguarding your personal assets as well as your business assets. These assets can be valuable when business or personal matters, like divorce, family disputes or the death of a business owner, arise.

 

Benefits of registering your business and forming an LLC or S-Corp

 

Each state has different requirements and application requirements for business incorporation. It's best to start with the state you're intending to be headquartered in, then go from there. To be in full compliance, you'll also need to do proper accounting for your business

 

Watch the Royal Wedding of Pippa Middleton and James Matthews

 

And so it begins.

 

Saving money on running your business

 

Your business is your life's work, and it can be overwhelming managing it all on your own. Including your business in your corporate structure means that you can choose how to pay your taxes and have all the legal backing your company needs. In addition, incorporating your business can reduce your personal tax burden and help you save money on everything from rent to business travel.

 

"When we incorporated our company in 2009, we were in a bit of a bind, but that wasn't the case for everyone. Going public would have cost us around $30,000. Even if you factor in tax savings, there is still money to be saved by going this route. A lot of companies are underestimating the benefit of incorporating," notes Ed Kay-Rees, CEO and Founder of Decent Manufacturing.

 

Helping grow your business

 

One of the most important benefits of incorporating is that it helps you grow your business. Why is that so important? One word: flexibility.

 

If you operate a side business, you're constantly balancing your time. That's no different for an incorporated business, but there are two huge advantages to it.

 

1. You get to decide when you're ready to work

When you're working for yourself, you have to figure out when you're going to work, and that's what gets you in trouble. You might have a huge sales day, but a slow day, and you're constantly working yourself to death. But if you operate a business, you get to decide when you're going to work. You don't have to work when you don't want to work, and you don't have to work when you don't have to work.

 

 

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