TOS 02: Should I Incorporate My Business? It depends.
If you are a small business owner, one of the first questions you will inevitably find yourself asking is whether or not you should incorporate your business. The answer to that question is not as cookie cutter as some may try to make it seem. In the next few posts, we will explore what factors you need to consider in deciding whether or not you are ready to incorporate your business and what type of business entity you should choose, if you are in fact ready.
The questions you should ask yourself and the topics we will explore are:
- Would your business benefit from Limited Liability Protection?
- How do you want to manage your business?
- How many owners will your business have?
- How do you want to be taxed?
- How will your business be financed?
- What is the end goal for your business (other than making money)?
The questions above really get to the heart of what incorporation is about. It's really about more than opening a business bank account and as a sophisticated business owner when you answer these questions, you'll discover what the right answer to the question, "To incorporate, or not?"