Why Should You Incorporate a Business?

The preferred way to protect your business in the USA

A corporation is simply a legal way to form a business. It is a procedure that is established with the State and a separate business entity is registered. That is, a corporation has its own identity. You get an IRS number (similar to an individual social security number) with which you can do your own transactions, purchases, apply for loans, open bank accounts, savings, purchase property, and more. All under the identity of the corporation and not necessarily that of the owners. Business is business. The owners are the owners. This is perhaps one of the most important things about doing business as a corporation. (The separation of risk of the business and the owner.) That is, the owner is not personally responsible for the debts or liabilities of the business. You can sleep more peacefully because this means that your house, your savings, and your family’s assets are not at stake.

There are several variations of incorporation. For details of the legal entity that is most convenient for you, you need to speak with an expert in the area. Just for illustration I mention some of the different variations that there are: Regular Corporation, “S” Corporation, and Limited Liability Company “LLC”.

This is what an expert in the area of ​​corporations tells us:

“The obligation of the owners of a business is limited and they will not be responsible for the debts or commitments of the company, as long as the corporation is properly organized and the formalities are done… doing this is not very expensive, it is simple, and it is essentially the same as obtaining a business license in complexity.”

The cost of incorporating a business in the USA ranges between $1,000 – $1,500, done by a professional.


  • It is one of the best ways to protect your investments
  • Owners have limited risk
  • The investment of the owners is usually what is put at risk
  • You can get more capital if you decide to sell some shares
  • You can save a lot of money on taxes and deductions
  • A corporation is perceived as more professional, large and organized
  • You can append a termination like “INC” “CORP” “Enterprise”
  • People prefer to do business with companies that look solid
  • It can guide you to act more formally
  • It is a marketing tool, security and greatness
  • You will sleep easier knowing that you are protected

The ideal way to operate a business is to incorporate it. This is not a very complicated process and in a couple of weeks you will have your “paperwork” ready! Do not let a procedure truncate your growth. Wouldn’t it cost you to own your own corporation?

As always we wish you much success in your business. Remember that the true American dream is a business!

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