The answer to this question is an emphatic YES! You need to figure out whether your business fits better in the structure of a Corporation (for-profit or nonprofit) or a Limited Liability Company (LLC) and then operate within that structure.
Here are 3 major benefits you get from creating a Corporation or LLC:
- Owners are protected from personal liability from business debts, judgments, injuries, and breaches of contract;
- It is easier to attract investors. As a sole proprietor, you can’t give away pieces of your businesses because by definition you own it all. If you want to raise capital, forming a corporation and having shares to sell may be your best option; and
- Corporations and LLCs are eligible for business tax credits, which can save you lots of money when it comes to filing taxes.
If you’d like more information on the subject, check out this webinar: What’s So Great About an LLC Anyway? The webinar will explain the differences between Corporations and LLCs in a clear and succinct way and by the end, you should know which entity you need to form.
Still filling a bit overwhelmed? Take a look at this post, How to start when you don’t know what to do. to help you get started.
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