When you start a new business there are several entities you can use, one of which is a corporation. Why would you need to open a corporation as opposed to a limited liability company? Let’s take a closer look at some of the advantages to opening a corporation.
The owner of a corporation is protected from personal financial liability, ensuring that their home or retirement savings are not impacted should the business be held financially liable.
A corporation can exist independent of its shareholders, so even if the owner dies, the corporation can still operate.
Corporations can raise capital by issuing stock or shares, which can make it more appealing to investors.
Like an LLC, a corporation can decide how it would like to be taxed by choosing to be taxed as a C corporation or an S corporation.
A corporation can offer a range of employee benefits such as stock options, retirement plans and health insurance, which can make it much easier to attract qualified candidates. Additionally, a corporation can lend credibility to a business, which can also be attractive to customers, vendors, and business partners.
These are just a few of the benefits of opening a corporation. PFSS is able to assist you with questions you may have about which business entity is best for you. We are skilled in navigating the complexities of licensing, thereby helping to minimize fees and delays that may be caused by errors in filing paperwork. Reach out to us today at [email protected] to find out if a corporation is the best fit for your business model.