Now is the time to say goodbye to the boss and start your own business from home. The respect and independence you deserve can be yours sooner than you think. incorporate.com invites you to get the information you need to form a corporation or LLC today. We can help you start your business from home.
I sell products out of my home and at parties hosted by my friends and relatives. How can incorporating or forming a business entity help me?
Your income is important to your family. Why not keep more of what you earn? Forming a business entity can protect your personal wealth and help you realize a tax savings too.
- Limited Liability. If you operate as a sole proprietor, your personal assets are at risk from business debts or possible lawsuits. However, owners of corporations maintain separate business and personal identities; therefore, their personal assets are shielded from the debts and liabilities incurred by the business.
- Credibility. Often when a potential customer is looking for a certain product type, they will lean towards the company that has Inc. or LLC after its name. Incorporation adds immediate credibility and authenticity to your business.
- Tax savings. Tax rates for business entities are lower than the individual tax rate. In addition, expenses like insurance and travel for business purposes may be eligible tax deductions.
My plan is to build a business out of my home and then sell it to fund my retirement. How can incorporating or forming an LLC make transferring ownership easier?
Transferring ownership of a corporation is easier because a corporation is a separate legal entity and does not cease to exist if ownership is transferred via the sale of a portion or all of the stock. If you decide to sell the business, the value of the company is based on the life of the corporation, as it is perpetual. If you were to transfer ownership of a sole proprietorship, the valuation is difficult at best, because the value of the company would be based on you, the owner. A sole proprietorship is not a separate legal entity.
Incorporation allows you to transfer ownership simply through the sale of stock.
I started a gift basket company out of my home. What steps do I need to take to make my business official with local and state regulations?
We can help you form a business entity in any of the 50 states or the District of Columbia. These are a few steps to take to get started:
1) Choose a Business Name. incorporate.com can assist you with name search and reservation.
2) Choose a State in which to form your business.
3) Select the type of business structure that best meets your needs.
We have business specialists ready to assist you today. It takes as little as 10 minutes to get started online. We have formed more than 300,000 businesses nationwide for entrepreneurs just like you.
I operate an import-export business out of my home and work in different states and countries. What are the tax advantages of forming an entity and to which states do I need to be concerned about paying taxes?
You can benefit from tax cuts by forming a corporation or LLC. If your business generates more than $100,000 in net revenue, the tax savings may be significant for you and any other shareholders. In addition, incorporated businesses are not limited in the amount of operating or capital losses the company can transfer between tax years.
Even though you have transactions in many states, each with different sales tax laws, it is not your responsibility to collect the sales taxes for all states. Home based businesses are required to collect and pay a sales tax when they deliver products and some services to a state in which they have a physical presence. This usually means having an office, store or other facility. However, if a business sends a sales force into a state, it is also considered a physical presence. Some products or services are exempt. Rules and regulations vary by state and sometimes within the state. Consult your accountant or a tax specialist for more specific information about your state.
Depending on the type of business you wish to operate, there may be restrictions in your county. Contact your local jurisdiction for zoning restrictions in your area.
I consistently have clients in my home for sales meetings or take them out in my automobile. Does my homeowners and auto insurance provide enough coverage to protect my assets in the event of an accident?
Your existing homeowners and auto insurance policies probably will not cover your business activities. You should also have liability coverage for customers and suppliers coming in and out of your home as well as third party auto insurance.
However; there are limits to the coverage provided by any insurance and the policyholder may be liable for a judgment that exceeds the coverage included in the policy. For this reason, incorporating or forming an LLC will help protect your assets and reduce your risk.
Some people would say a partnership agreement comes to mind when you consider a business between two people. Although a partnership agreement could be helpful in solving disputes, it will not provide limited liability for your personal assets. However, incorporation will protect each of you personally against any liability incurred by the business and each of you separately from the personal actions of the other. An LLC can offer more flexibility and may not require some of the same formalities as a corporation. LLCs are contractual in nature and the owners decide how the entity will be managed. There are significant tax differences between an LLC and a corporation to be considered.
While most of our clientele in your industry have selected an LLC, it is our recommendation that you consult your tax advisor to discuss your specific situation and to decide which business entity is right for you.
An "Inc." or "LLC" after your company name conveys an authenticity to your business that will impress potential customers, vendors and lenders. It essentially invokes a feeling that you're genuine, committed to excellence, and you're a credible business person.
The advantages of incorporation are many. One of the most important for you would be asset protection. As a sole proprietor, you would be responsible for any business debts or lawsuits against your business. Owners of a properly managed corporation or LLC are shielded from liability by virtue of their incorporation status. If a lawsuit were to be filed against your business, your liability would be limited and your personal wealth would also be protected. In addition, there are tax savings to consider. Corporations are taxed at a lower rate than individuals and many of your business expenses may be deductible.
Yes, incorporate.com provides registered agent services in all 50 states and the District of Columbia. Corporations, LLCs and other business entities are required by statute to have a local registered agent in the state where the entity is formed and for the states in which it is qualified or registered to conduct business. The registered agent receives legal process and compliance mail on behalf of the business in the applicable state and is responsible to forward all such items to their designated contact for handling.
incorporate.com offers International Mail Forwarding services for letter mail to Delaware and Nevada companies. At the end of each business week, we will forward letter mail to you via first class.
As a home-based business, you do not worry about your commute. However, you work hard to improve and organize your business.incorporate.com supports your efforts and offers useful products and services to assist you. From finding necessary permits to getting your Employer Identification Number (EIN), we save you time and allow you to focus on your everyday business tasks.
For a full list of products and services offered by incorporate.com, check out Our Services. We'd like to offer the following services in particular to your home-based business: