You can be able to enjoy very many advantages from becoming a corporation. A major advantage of corporations is that they have limited liability. Corporations ensure that shareholders are provided limited liability protection. This means the shareholders will not be responsible for the debts and liabilities of the business. If the business delays in paying the debtors, the personal property of shareholders is never used. This is not the same to those companies that are not corporations. In this case, the shareholders are the ones that pay for the debts of the business.
Another advantage of corporations is that you will enjoy a lot of tax benefits. As a business you will enjoy the deduction of health insurance premiums. These are the premiums that are paid on behalf the shareholders and the employees. The corporate income they earn and the savings that apply on self-employment taxes are not taxable. In this case, Medicare taxes for workers and compensation for workers will never be taxed. This is why you should make your business a corporation Another tax benefit you can enjoy from a corporation is that dividends and capital gains are exempted from taxation. If you don't know the tax advantages you will enjoy as a corporation, you should just hire a tax advisor. Gather more insight from https://www.corporatedirect.com/starting-a-business/difference-llcs-corporations.
Another advantage of corporations in is that they establish credibility. Potential customers and vendors are able to trust your business and this will ensure this makes you look more credible. Company formation will also help your business in unlimited life. You can be able to pass the ownership from one person to the other. The life of a company is not solely dependent on the owners of the business. This means becoming a corporation your company will have the characteristics of unlimited life. This means if the owner of the company wants to sell his interest, the business will still continue to operate. Learn more here.
Another advantage of becoming a corporation is that it enhances transfer of ownership. Ownership is gained after becoming a corporation. Easy raising of capital is another benefit of corporations. You can be able to raise capital for your business more easily. In this case you can achieve this by selling stock. To raise capital, you will be able to sell shares and issue bonds. As a corporation, it can become very easy to get a loan from banks. It can be very easy to develop retirement plans when you are a corporation. An added advantage of corporations is that all the profits and losses are passed to the shareholders. This is because corporations don't pay income taxes. In conclusion, as a corporation you will be able to enjoy all the above benefits.