Q&A: What are the benefits of incorporating a small business?

I'm currently a sole proprietorship that is being killed with all kinds of taxes and few amortization options.

The ONLY reason to incorporate is to protect your personal assets, but it's not worth it unless you have a bunch of "attached" assets. That list varies by state. There are NO tax benefits to incorporate for most small business / freelance VASTs. That's a myth perpetrated by lawyers making a bargaining chip by drafting simplistic articles of incorporation for freelancers. Go to a good CPA and make sure you get all the deductions you can legally take. I bet you are missing a few important ones. He / she can also advise you on how to deposit money in a SEP, IRA, Roth IRA, etc. Saving some of your earnings for retirement WILL HAVE tax advantages, some now, some later. As a bonus, you won't have to eat dog food when you get older.

More Q&A's:

  • What are the primary benefits of forming an LLC?
  • How to setup a cleaning business?
  • Incorporate a Business in Delaware
  • Merchant Account for Delaware Inc?
  • LLC Formation in Maine