Incorporating in Florida: Four Reasons Why You Should

2007-03-08 10:33:40

( Business )



Incorporating in Florida should first start with learning advantages if you incorporate your business. This will help you determine the best course of action given the nature of the company that you own and the amount of resources that you have at your disposal.

One of the advantages of incorporating in Florida or in any other state is that a corporation has a life of its own. If you have a sole proprietorship or a partnership, the company is dependent on the owner or the partners to run the company. With a corporation, the board of directors can continually change, as well as the officers of the company, while the entity remains the same.

Having a corporation also frees any of the owners or shareholders from debt. If you borrow money in the name of the corporation, it is the corporation that becomes liable. This is what you may have heard of as limited personal liability. Your creditors cannot stake their claim on your personal assets precisely because you are protected by the corporation.

Another advantage of incorporating in Florida or any other state is that a corporation will offer you anonymity. You do not need to reveal to the general public that you are the one running the corporation. While corporations may be used for illegal purposes because of this advantage, they are still bound by the same federal laws of the United States.

The need to incorporate becomes tantamount to the advantages that it brings its shareholders. Another advantage that corporations can bring you is tax deductible benefits. Whether it is life insurance or a health care plan, you can save on these when under a corporation. You can also benefit by getting a tax shelter for retirement plans when are a stakeholder or an officer of a corporation.


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