If you have an entrepreneurial spirit, and have a product or service that can benefit others, you may be considering starting a business. Even if you’ve been doing business for a while and have built up clientele, it may be in your best interest to incorporate, in order to establish trust with current and future customers. Depending on your type of business and the state you operate from, you may just need a business license. However, incorporating could be beneficial for your business, and presents your company as dependable and authentic.
Shows you’re serious about long term business: It’s easy to set up a business, but you have to go through several steps, fees, and waiting periods, before you can incorporate. However, doing so shows that you are serious about being in business for a long time. Your corporation can outlast you, and longevity is attractive to both, suppliers and customers. A company that incorporates is giving the message that they plan on providing goods or services, even if the founder retires or moves on to another venture.
Proves you’re willing to risk liability: While a sole proprietor can just start a business whenever they’d like, they run the risk of being liable in the event that someone sues them. Incorporating your business can protect you from such liability, but it also demonstrates to the public that you were willing to invest the money to become an established business, and risk financial liability if ever a legal issue were to occur.
Confirms that there’s a person behind the business name: With so many scams and fraudulent businesses popping up, with the sole purpose of deceiving consumers, incorporating your business is a way to notifying people that there is a person behind the business name. This will set their mind at ease that there’s no automated set up to con them out of their money and not provide the good or service that is promised.
To further establish your credibility, Inc Plan can also help you open a US Merchant or Bank account, which allows better flexibility when it comes to customers paying you, and you receiving your payments.
Incorporating distinguishes you from the competition: Since the worldwide economy has shifted, many people have been going out and starting their own businesses from home. While that is great for them, it also means you have more competitors. Incorporating your business will differentiate you from other businesses or contractors in your field of business, by proving to your prospective customers and suppliers that you are a legitimate business.
Clients will be better able to identify that you are incorporated by including your business type at the end, such as Inc. or LLC. This not only exhibits professionalism, but is also a quick indicator that you went through the process of incorporating, which includes filing the appropriate documentation, paying state taxes, and obtaining an Employer Identification Number (EIN).
If you’re considering incorporating, don’t hesitate. It’s a great investment for business owners who want to exude confidence and authority in their field.