Many times I find myself talking to a "business owner" and find myself holding back from asking them what I really want to ask them... "Are you really a business?" I am amazed at the number of business owners who never take the steps to incorporate or formalize their business entity. Forming an LLC or a Corporation is one of the most important steps that you could ever take, yet so many people never take it. You may be asking yourself, "why do these things matter?" Let me share a few of the reasons with you:
- First and foremost, forming an LLC or Corporation provides you with a layer of separation between your business and personal assets. In my opinion, many business owners don't lend much consideration to the liability & exposure that goes along with owning a business. Creating a liability shield around your personal assets and maintaining separation between business and personal activities is crucial.
- Secondly, there are certain tax advantages that can be utilized within a Corporation. Many business owners have no idea that they are subjecting themselves to some unnecessary taxation because they are not incorporated.
- Finally, there is a level of credibility and legitimacy that you gain when you formalize your business and add "LLC" or "Inc" to your name. Think of it as an accreditation process that you should go through...
If you found these thoughts interesting, or if they caused you to do some thinking of your own, give Safe Shield a call for more information.
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