Business incorporation offers tremendous benefits for
businesses including tax savings to liability protection.
However, if you do not undertake the process carefully, you
are prone to make mistakes which can cost your business.
Remember not to commit these 4 common incorporation
CHOOSING THE WRONG BUSINESS ENTITY
Picking the right entity amongst LLC, S Corporation and C
Corporation is very important. Understand the nature of your
business and identify the right business entity, else it’d lead to
problems such as double taxation.
INCORPORATING WITHOUT LICENSE
Incorporation is different from licensing. Several businesses
must procure a local, state or federal license. You will have to
look at the local city hall or county office to know which
license your business needs.
FAILURE TO KEEP YOUR BUSINESS IN COMPLIANCE
If your business entity such as LLC or corporation fail to stay
compliant, it is highly likely that your personal assets are prone to
seizure. Keeping personal and business assets separate, regularly
filing tax returns, sending reports and statements promptly are
some means to keep your business in compliance post
SETTING VAGUE COMPANY NAMES
While it is essential that your company name must be unique
and relevant, it is also equally important that the name isn’t
vague or obscure. Setting such names might confuse the
customer and make them assume that your service cannot
meet their demands.
Get in touch with experienced business incorporation
specialists to make sure any mistake isn’t committed
throughout the process.
For more details,