WHY FORM A BUSINESS ENTITY?
Most, if not all entrepreneurs start a business for one simple reason… to make a profit. As your business becomes successful, those profits transform into personal assets and wealth. One of the main reasons for you to form a Corporation or LLC is to protect your personal assets by separating them from your business liabilities. SEPARATE YOUR ASSETS FROM YOUR LIABILITIES WITH A CORPORATION OR LLC Asset Protection – Forming a C Corp, S Corp or LLC creates a legal separation between you and your business. You work hard to make a living. The last thing you want is to lose your home, your car or child’s college fund due to a business liability such as a creditor or lawsuit. Without forming a business entity, you are operating as a sole proprietor or perhaps a partnership. Either way, you are personally responsible for any liabilities you or your partners create. An LLC or Corporation is treated as an individual by the courts. Therefore, the liabilities fall to the business entity, not you. Asset protection is not the only reason to operate your business through a Corporation or LLC; there are numerous other benefits as well.
Check back next week to learn more! If you have questions, please contact Natalie Tiras at CenterPoint Corporate Services, Inc. at 775-832-5800 or firstname.lastname@example.org www.centerpointcorporate.com