Why Should I Incorporate My Texas Small Business?
When Presidential candidate Mitt Romney said, “Corporations
are people” the general public groaned and questioned the rational, while
lawyers nodded in agreement.
Corporations are people in the sense that they are classified as their own legal entity and therefore have legal standing to bring lawsuits and be sued. Legal entities are associations, corporations, partnerships, proprietorships, trusts, or individuals.
So why should you incorporate your Dallas area business? For that very reason, the corporation can stand on its own as a legal entity.
Your personal assets and liability are separated from those of the business. All business activity is conducted as a separate legal entity; therefore, any legal actions taken against the business are only going to put the assets of the business at risk. Any assets in your name are only at risk in personal legal actions. Incorporating your Dallas area business creates a shield that protects you and your assets from any liability incurred by the business.
Corporations also get tax benefits and credit. Depending on profits and the specific class of the corporation, even the smallest corporation can receive tax benefits and breaks. Tax breaks for the corporation means more capital to invest in the growth of the corporation. That growth can be assisted through establishing credit. As a legal entity, corporations can obtain credit, solely in the corporation’s name. Being incorporated lends credibility when an investor or lender looks to invest into your business.
Texas is a corporation friendly state. In a recent survey of small business owners, Texas ranks as one of the most “business-friendly” states. See the survey: http://www.thumbtack.com/survey#2013/states. By incorporating your Dallas area business you are making it easier for customers and clients to do business with you. Why? Because corporations are governed by the Texas Business Organization Code, every corporation established under Texas law has the same rules of set-up, structure, filing with the Secretary of State and rules and regulations to follow. A corporation in Dallas is following the same rules as a corporation in Lewisville or Denton and every other corporation across the state. As with investors, customers and clients may see your incorporated Dallas area business as more credible because of the uniform rules and regulations required.
If you have questions about incorporating your Dallas area business or other Texas business law questions please contact The Wright Firm at 972-353-4600 or visit our website at thewrightlawyers.com.
Recent Comments