Many people think of corporations as large multinational industries. While it is true that most major companies are incorporated, the truth is that a corporation can be a medium-sized business, a family-run venture, or even a single person. If you are thinking about incorporating your business, there are many pros and cons to be carefully weighed.
An experienced Iowa business attorney can help you research your options and, if you choose, incorporate your company with a minimum of complications. To learn more about your legal options as a business owner, call your Iowa lawyers of LaMarca Law Group, P.C. at (515) 705-0233.
Reasons to Incorporate
There are many potential advantages to running a corporation, including:
- Protection of your assets – Corporations are considered separate individuals under the law. This means that if you face any difficulties such as bankruptcy or litigation down the road, your private assets will be protected. Any losses will come from your company’s assets.
- Durability – When the owner of a small business retires or passes away, that is often the end of the business. However, if your business is a corporation, you can select someone to manage it after you. That way, your business can continue thriving for generations.
Our Iowa incorporation lawyers can provide further information about the protections offered by this legal process.
Disadvantages of Incorporating
Of course, every option has its potential downsides. Some potential disadvantages of incorporating include:
- Strict legal regulations – Depending on the type of corporation you choose to start, you will need to follow a lot of legal regulations. These will influence the structure of your company, the taxes you pay, your future financial decisions, and more.
- Expense – There will likely be several different fees involved in filing your business as a corporation. In addition, you may be subject to double taxation (taxes on your personal income and your company’s income), limitations on your salary, and close IRS scrutiny of how you manage your money.
As you can see, the decision to incorporate should not be made lightly. We strongly recommend discussing your plans with a qualified business attorney before making your final decision.
For assistance with incorporating your business, contact Your Iowa lawyers of LaMarca Law Group, P.C. at (515) 705-0233.