So you came up with a new business idea and you are excited to start making some money! But where should you start and what is involved? What are the advantages of incorporating a business?
First, think about what made you want to start up your business. Maybe you had a passion for cooking and wanted to start your own bakery & café, perhaps you are an entrepreneur and want to grow a large company, or you could be running your own home-based business. Incorporating your business is necessary to having your business recognized by the state so you can start making money!
A corporation is formed when paperwork and a filing fee, is submitted to the New York Department of State. Upon completion, you will be issued with a filing receipt. A filing receipt is an important document that is needed for business transactions. Having a business personally protects you from liability if your business malfunctions. In the case of a lawsuit, your personal assets cannot be affected. Tax savings and deductions are also benefits to keep money in your pocket.
You may also want to incorporate your business if you plan to grown your company over time. Some choose to expand to another state. If you are planning on hiring employees, looking for investors or raising capital, registering your business with the Department of State, Division of Incorporations is the right choice. When your business is no longer just a hobby, it is time to incorporate your business. We are here to help you get started!