The internet revolution has leveled the playing field when it comes to doing business. It’s easier than ever for individuals to set up a small business and use the web to operate in vast markets that would have been out of reach just a few short years ago. Nonetheless, there comes a time in every venture’s life when its level of success means that setting the operation on a solid legal footing is a good idea – and this means becoming incorporated. Whether you’re a USA citizen or are based overseas, setting up a USA corporation has several key advantages which can really help you take your business to the heights of success it deserves.
Firstly, being incorporated grants your business a somewhat abstract but nonetheless huge advantage: an increase in prestige. No matter how small your company, when you’re incorporated you automatically gain a degree of trust and respectability among potential customers, which can greatly help with transacting business. This is especially important for overseas business people who wish to trade in the USA – Americans are far, far more likely to buy from an operation with a USA address rather than trusting to international shipping.
This increased status also helps when it comes to dealing with other companies. When you’re incorporated rather than staying as a sole proprietorship, larger players are more likely to take you seriously as potential partners. Indeed, if you want to participate in some major sales programs such as the one hosted by Amazon, having a USA trading address and business identity is a prerequisite before even being considered.
Owners of incorporated business also benefit from technical and regulatory advantages. With a sole proprietorship, the owner is personally liable for any debts the business runs up, and the credit rating of the business and the proprietor are one and the same. Once incorporated, these links are broken. If the business fails, the owner’s private assets are not at risk, and any bad debts that the business leaves behind will not be recorded on the owner’s credit file.
Finally, for overseas businesses, being incorporated in the USA makes it much easier to get a US bank account. This can not only save a fortune on currency conversion, but is an essential for trading with many businesses who will only pay invoices or commissions straight into a USA bank for tax and accounting reasons.
Although incorporating your small business can seem like a large undertaking, and not one that might even be necessary just now, the benefits of setting up a legal identity for your venture can be huge. Professional help from a business incorporation services provider such as IncPlan (USA) will make the process as easy as possible, and they can also advise on how to best set up your company and take it forward into ongoing future success.