Many of our business-formation clients are successful business owners who started out as consultants. They chose the simplest structure, that of sole proprietor, which worked well in the early years, but as they grew and prospered, their businesses became more complex. They added associates and partners and realized that a sole proprietorship was not offering the protections they needed and began to think about incorporating.
The Biggest Advantage of a Corporation: Protecting Owners From Liability
The primary reason for incorporating is that it separates the business from the owners. The corporation acts like a separate body that can do things like buy and sell property, be taxed and enter into contracts. But most important, it protects its owners from personal liability for corporate debts and obligations.
What’s Included in a Business Formation Package
There is flexibility within these business structures. You can choose an S Corp, a C Corp, or an LLC. If you’re not sure which is the best fit for your business, QP Services can assist you, based on the needs and requirements of your organization. We can also refer you to our large network of other professionals, such as local attorneys or accountants.