Corporate Attorneys Fredericksburg VA
Thomas Allen Glessner
Po Box 42060
Corporate, Constitutional, Estate Planning, General Practice, Government
John James Good Jr.
12 Stafford Ave
Estate Planning, Business, Tax, Intellectual Property
California Western School of Law,University of California - Irvine
11210 Catharpin Road
Estate Planning, Contracts, Environmental, Family, Business
University of Richmond, The T. C. Williams School of Law,University of Mary Washington
Dennis E. Ahearn
1119 Caroline Street
Paul T. Scott
700 Princess Anne Street
Barry Jay Waldman
150 Olde Greenwich Drive, Suite 102
Family, Business, Criminal Defense, Speeding Ticket
University of Richmond, The T. C. Williams School of Law,University of Virginia
Wesley Dean Wornom
1259 Courthouse Rd, Suite 203A
Family, Adoption, Mediation, Litigation, Business
University of Virginia School of Law,College of William and Mary
Thomas F. Williams Jr.
321 William Street
Paul A. Simpson
725 Jackson Street, Suite 200
Gary M. Nuckols
725 Jackson Street, Suite 200
Costs And Benefits Of Incorporating Your Business
Long ago, when a person went into business, they risked losing their personal assets if the business failed. Then, along came the corporation, and things started looking up. There are advantages to most types of business structures, but incorporation tends to have the greatest advantages and protections for business owners.
By incorporating your business, you will be gaining protection from personal liability. If a business is incorporated, the corporation is responsible for all debts owed by the business. If the business is sued, the corporation is being sued - not the business owners. The business owners personal assets are protected by the corporation.
One of the most attractive benefits of incorporating is the tax savings. The tax savings you may realize are dependent upon the type of corporation you choose - C Corporation or S Corporation. Income shifting, where income is divided between the corporation and its shareholders in a manner that lowers taxes for both the shareholders and the corporation, is one of the potential tax advantages. Favorable tax treatment of fringe benefits is also possible, which allows incorporated businesses to deduct up to 100% of insurance premiums with the proper insurance plan.
There are also no limits or restrictions on the amount of capital losses that a corporation may carry back or forward to subsequent tax years. Further more, individuals may be able to realize tax savings by leasing their personally owned property, such as real estate or automobiles to the corporation. A business owner can also save money in self employment taxes. A business owner who does not incorporate his business (sole proprietorship) must pay self employment taxes on all profits, however, if the business is incorporated, the business owner will only owe self employment taxes on the amount that was actually paid to him, in the form of a salary. A tax professional will help you determine which type of corporation will give you the greatest benefits.
Ownership of a corporation is easily transferable is you decide to retire or get out of the business. Stock is simply transferred to other stock owners, heirs, or back to the corporation. A corporations life is not dependent upon the life of it's members. When a member dies or sells out, the corporation continues to exist and do business.
If your business is incorporated, operating capital can be raised more easily, by selling stock, and investors are e...
Click here to read the rest of this article from GlobalBx