Why do i have to Register My Business in America?
Protect Your Personal Assets
Forming either a corporation or an LLC is similar to a partnership, minus the need for excessive paperwork and fees. It allows the business owner to separate and protect their personal assets in case of a lawsuit or claims agains the business entity. In an effectively managed and structured company, owners should have limited liability for outstanding business debts and obligations. This remains as one of the leading benefits to incorporating.
A major benefit of incorporating your business is the authentication of adding an "Inc." or "LLC". This definite distinction affords your business with the instant credibility and authority associated with owning an incorporated company. Potential consumers, vendors and partners may prefer to do business with an incorporated company and will generally tend to pass over the ones who are not.
In many states within the U.S., other businesses may not file your exact corporate or LLC name in the same state. From a branding standpoint, this not only helps protect your company's reputation from being diminished by or confused with another company bearing a similar sounding name, but strengthens your businesses in terms of brand identity and marketing efforts. In other words, you'd be the "one and only" - not to be confused with any other.
Constant steadfast entity
Corporations and LLCs continue to survive throughout ownership or management changes within your business. Sole proprietorships and partnerships usually come to a screeching halt if an owner dies or leaves the business. Forming a corporation ensures that your company's legacy can be preserved, as well as continue to provide employment and services for clients should any changes in ownership take place.
There are several tax advantages and benefits of incorporating a small business. While profit and loss typically "pass-through" an LLC and get reported on the personal income tax returns of owners, an LLC can also elect to be taxed as a corporation.
Tax Advantage & Benefits
This is definitely the absolute best advantage of forming an LLC. With your LLC, you'll only pay a franchise tax of $300 per year; nothing more. Sweet!