Why Should You Incorporate Your Business?

Apr 5th 2021

The preferred way to protect a business in the USA

A corporation is simply one of the legal ways to form a business. It’s a process through which a business is registered with the state as a separate legal entity. In other words, a corporation has its own identity. It is assigned a tax ID number (similar to an individual’s social security number) under which it performs transactions, makes purchases, applies for loans, opens bank accounts and savings accounts, acquires properties, etc. All of this is done under the name of the corporation, rather than the name of the owner or owners. The business is the business, and the owners are the owners. This separation, which limits the amount of risk to which a business owner is exposed, is perhaps one of the most important things about doing business as a corporation. It means that the owners aren’t personally responsible for the debts or liabilities of the business. You can rest easy knowing that neither your home, nor your savings, nor your family estate will be at stake.


There are several different kinds of corporations. To determine which type of legal entity is most suitable for you, you’ll need to discuss the details with an expert in that area. For purely illustrative purposes, the options include Regular Corporations, S Corporations and Limited Liability Companies (LLC).

An expert on corporations has the following to say:

"The obligation of the owners of the business is limited, and they are not responsible for the debts or commitments of the company, as long as the corporation has been duly organized and the corporate formalities have been observed… It’s simple and inexpensive to do this; the level of complexity is roughly equivalent to that of obtaining a business license."

The cost of having a business incorporated by a professional in the USA varies and should be around $1,000 to $1,500.



  • It’s one of the best ways to protect your investment
  • Owners have limited exposure to risk
  • The money the owners invest in the business is generally the only thing at risk
  • You can raise additional capital if you decide to sell shares
  • You can save a lot of money on taxes and deductions
  • A corporation is perceived as larger, more professional and more organized
  • You can add an extension like “Inc.,” “Corp.” or “Enterprise” at the end of the business name
  • People prefer doing business with companies that appear to be well-established
  • It can guide you to act more formally
  • It’s a great tool for marketing, security and growth
  • You will sleep easier knowing that you’re protected

The ideal way to operate a business is to incorporate it. The process isn’t very complicated; within a couple of weeks, all of your paperwork will be ready! Don’t let a formality stunt your growth. Wouldn’t you like to have your own corporation?

As always, we wish you great success with your business. Remember that owning a business is the real American dream!

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