Whether your ecommerce site started out with a formal business plan or it was a part time home-based venture, you may want to give some thought to incorporating. While forming a corporation offers legal protection, tax advantages, credibility and opportunities to raise capital there is also a lot of paperwork, record-keeping and fees involved. Before making the decision to add "Inc." to your company name, it''s best to examine whether your company will achieve a significant amount of growth and profit to offset the efforts. A corporation is chartered by the state and becomes a totally separate entity from the owner incurring it''s own liability for debts and taxes. The benefits of incorporation are multi-fold:
- Longevity of the company can be assured since there is no dependency on any one person.
- The company will have the ability to raise capital through the issuance of stock.
- It offers protection to the owners and stockholders from potential lawsuits.
- A corporation guards the personal assets of the owners and maintains anonymity of the principals if desired.
- Tax savings and tax-deductible benefits.
Since your business is web-based, why not incorporate via the Internet too? In a matter of minutes, The Company Corporation can incorporate your e-business in any state. While the site doesn''t offer any legal or financial advice, there is comprehensive information on the more popular types of corporations and how to determine which method to use for your e-business. Pricing is based on the cost of filing in each state and the package of options available from The Company Corporation. If you choose the Complete Package, you receive the necessary incorporation basics as well as domain name registration, hosting and design.
If you are determined to create a profitable and long-lasting business, it may be in your best interest to incorporate. In addition to the legal and financial advantages, "Inc." can often boost credibility and enhance your reputation.
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