Corporation - Edgar Palacios

Incorporation

"A legal way to save taxes"

* Savings on self employment tax, which represents aproximattely the 80% of each year.
* Ability to declare more income in order to reach a better financial position which qualify you for better home or car loans interest rates.
* Shareholders personal belongins are protected from any corporation debts.
* Big reduction of quartely estimated payments with internal revenue service.
* The money invested to set up the corporation will be recovered in the first year of business or the first $15,8686 of net income earned.

Dear client:

For many, the process of incorporating seems complex and difficult, as well as an expensive and timely process that requires a lawyer. Not true on all accounts; EDGAR N PALACIOS, PA & Co. can help you incorporate your new entity and have all of the required paperwork in your hands in as little as 5-7 business days.

There are a couple of key benefits that come to mind when thinking about incorporating:

Reduces Personal Liability Incorporating helps separate your personal identity from that of your business. Sole proprietors and partners are subject to unlimited personal liability. Creditors of the sole proprietorship or partnership can bring suit against the owners of the business and can move to seize the owners' homes, cars, savings or other personal assets.
Tax Advantages

Deductible Employee Benefits Incorporating usually provides tax-deductible benefits for you and your employees. Benefits such as health insurance, life insurance, travel and entertainment expenses may now be deductible.

An Enduring Structure A corporation is the most enduring legal business structure. Corporations may continue on regardless of what happens to its individual directors, officers, managers or shareholders. If a sole proprietor or partner dies, the business may automatically end or it may become involved in various legal entanglements. Corporations can have unlimited life, extending beyond the illness or death of the owners.

Easier Access to Capital Funding Capital can be more easily raised with a corporation through the sale of stock.
Easier Transfer of Ownership Ownership of a corporation may be transferred, without substantially disrupting operations or the need for complex legal documentation, through the sale of stock.

Adds Credibility A corporate structure communicates permanence, credibility and stature. Seeing ",inc." or "corp." at the end of your business name can send a powerful message to your customers, about your commitment to the ongoing success of your venture.

Anonymity Corporations can offer anonymity to its owners.

These are just a few items you may want to consider when evaluating to form a corporation or limited liability company. If you'd like to learn more, simply give us call. We'd be pleased to answer your questions and evaluate whether or not incorporating your business is right for you