Incorporating your business forms a new separate legal entity which protects personal assets and can last forever, raise funds, have it's own credit and be transferred to a new owner.
Advantages of Incorporating Your Business
The advantages of incorporating your business include unlimited life of the business, enhanced transferability of shares and ability to raise investment capital, limited personal liability for company debts and obligations, name protection, tax flexibility and beneficial tax treatment such as net based tax liability and in the case of S chapter election, only a single layer of taxation. Both corporations and LLCs allow owners to separate and protect their personal assets in the event of a lawsuit leveled against the business entity. When incorporating in New York, a certificate of incorporation must be filed with the New York Department of State.
Information that must be included on the certificate include the identities, ages and addresses of each incorporator. New York State law limits the use of certain words and phrases in business names unless approval is first obtained from the overseeing state governmental agency. Some of these words include bank, loan, mortgage, insurance, endowment, indemnity, trust, annuity, title, benefit, medicine, doctor, lawyer, union, labor counsel, blind, handicapped or words that imply a school or daycare center. The cost to have us file incorporation paperwork for your corporation is $199.00 + court fees.