Incorporation – Why Incorporate at All?

You probably already know the “why” because you’re here on our site, but here are the main reasons for incorporation of your new business:

If you don’t incorporate – your personal assets can be taken by the courts if someone sues you.

That’s a pretty strong reason. Reason enough? We think so. Most people fear their car, house, boat, and savings being taken due to some legal action – even wrongful, that results in the loss of not only their business assets, but their personal assets as well. One very good way to protect yourself is by incorporating your new Colorado business which creates a new corporate entity in the eyes of the IRS and the court system. When the company is sued – the company loses assets and cash – not you or other owners’ personal assets and cash.

The other great reason that is often cited pro incorporation is the resulting tax benefits at the end of the year. Each corporation has different tax rules that result in different amounts of savings, but, LLC and S-Corps are great for individually run small businesses, probably with the advantage going to the LLC.

LLC’s are what we help most small business owners into on this site and our other state incorporation sites.

You’re better off to incorporate. Don’t leave yourself open to loss.

Best Regards,

Dean Harrington, Owner

Why Incorporate Your Business?

The WHY of incorporating your new business is the easy part.

Two reasons that convince most people are these:

1. Creating a business entity separate from yourself is like making a buffer between you and your personal assets – car, boat, house, savings, stock, etc and the business. If you’re a sole proprietor or in a partnership you can have your clock cleaned as a result of a court case against your business. You might lose everything that you’ve worked hard to get. On the other hand, if you incorporate you’re protected from having your personal assets taken in most cases. This is the PRIME reason for incorporating your business.

2. Saving money on taxes.

We all realize we need to pay taxes – but, if we can legally save money while paying taxes – what’s better than that? Incorporating your business allows you to take advantage of specific IRS tax breaks that will keep money you have in your pocket, not in a check written to the IRS. This is the number 2 reason for incorporating your business.

These two reasons alone should be impetus enough to get you moving to incorporate your Colorado business.

There are other advantages to incorporation, and specific advantages you can explore more by reading about LLC’s and Subchapter S corporations (S-Corporations).

Creating a corporate entity gives your business other options like introducing a higher probability that angel or other investors will loan you money.

Getting incorporated in Colorado is easy.

1. Choose a type of corporate entity. This is a legal entity that is taxed according to IRS statutes. The EIN / Federal Tax ID number is like a social security number for your business. When you have it – it means you as a person are separate from your business according to the IRS. Each has tax obligations and rules to follow. Luckily for you incorporation provides tax advantages in many cases – all you need to do is take advantage of them.

2. Come to StartColoradoBusiness.com and fill out the appropriate form.

3. Choose any other services, like registered agent if you don’t live in Colorado or know someone that will act as registered agent for your Colorado business. Add a corporate kit because you’ll be buying one anyway and we have a deluxe kit for a very fair price.

4. Pay with a credit card using Paypal or Google Checkout. Or even call us on the phone – up to you.

If you have any questions about becoming incorporated in Colorado we have a toll free number: 888-905-7380 where you can reach us.