Incorporate - Need To Know
- A corporation's life is not dependent upon its members. A corporation possesses the feature of unlimited life. If an owner dies or wishes to sell their interest the corporation will continue to exist and do business.
- Retirement funds and qualified retirement plans (like 401k) may be set up more easily with a corporation.
- Ownership of a corporation is easily transferable.
- Capital can be raised more easily through the sale of stock.
- Owners have limited liability from business debts and obligations.
- Owners can report their share of profit and loss on their individual tax returns without filing a separate corporate tax return.
- LLCs can be owned by individuals or other companies.
- LLCs do not have the same corporate formailities as a corporation.