Incorporating in North Carolina is not just for large companies with many employees. Every business owner should carefully consider the advantages of incorporating, setting up an Limited Liability Company (LLC), or using another type of business entity. Incorporation offers a variety of tax advantages, liability protection, flexibility of management, and most importantly provides protection for business owners.
At The Doyle Law Offices, P.A., we have been advising small business owners in Cary, Raleigh and across Wake County since 1995. We can help with business entity selection, formation of your business entity, as well as maintenance of corporate formalities and other needs.
There are two primary considerations in making the decision to incorporate or set up an LLC:
Sole proprietors run tremendous risks every day as they operate their businesses. When a business is operated as a sole proprietorship, the owner can be held personally responsible if anything goes wrong.
If the business gets sued, if there is an accident or if the business fails, the individual owner could find his or her personal assets to be in jeopardy. This means the home, the savings and everything a person has worked for over a lifetime could be wiped out.
A properly formed and operated business entity, like an S – corporation or LLC, can shield personal assets from liability in the event of a business reversal or accident.
Properly formed S-corporations and LLCs can be classified so that they have what is known as “pass – through” tax liability. This means that the profit (or loss) of the business will pass through to the owner’s personal return.
There would be no corporate taxes. There are many other advantageous tax considerations to running a business as a corporation or LLC as opposed to being a sole proprietorship.
There are several steps that need to be taken in order for your corporation or LLC to be ready to do business. For LLC’s you must file Articles of Organization, whereas for corporations you need to file Articles of Incorporation. While a corporation is more formal, owned by shareholders and managed by a board of directors; an LLC has less formalities and tends to be less regimented. With numerous steps in a complex process, contact an incorporation lawyer for advice and assistance.
Every business is different and requires careful evaluation by an experienced North Carolina business lawyer to properly advise the business owner.
What makes us so different? For one, we’ve spent almost twenty years building a referral network of experienced CPAs and other professionals to provide our small business clients with all the tools they need to be get started, grow and be successful in this challenging economic climate.