Forming A Business Entity Why Size Doesn t Matter
Below is a MRR and PLR article in category Internet Business -> subcategory Web Hosting.
Forming a Business Entity: Why Size Doesn’t Matter
Summary:
When people hear the word "corporation," they often think of massive businesses with office towers and countless employees. However, even the smallest business can benefit from adopting a structured business entity similar to larger companies. Whether it's a Limited Liability Company (LLC), close corporation, or non-profit, structuring your business this way can offer significant advantages.
Article:
When you hear "corporation," you probably imagine towering office buildings, bustling boardrooms, and vast numbers of employees. It might surprise small business owners to learn that creating a structured business entity?"like an LLC or close corporation?"offers advantages not unlike those enjoyed by large companies, regardless of your business's size or stage.
From corner delis to solo consulting firms, nearly any type of business can benefit from forming a business entity. You might think, "My business is small, or just starting out. I can't afford the time or cost of setting up a business structure." Here's why that's a misconception.
First, setting up a business entity can be quick and affordable. Harvard Business Services, Inc., for example, offers services that can form your business entity in minutes. Even if you opt for premium services, the cost is likely less than buying a new desktop computer. The value of forming a business entity far outweighs the cost. Here’s why:
Running a business makes you vulnerable to lawsuits. Consider the case of a family-owned dry cleaner in Washington, D.C., sued for over $50 million for losing a pair of pants. Extreme, but it underscores the risk you face if a customer has an accident, or if a business-related mishap occurs.
You might say, "I have liability insurance. That will cover any lawsuit costs." But consider this: Is your insurance coverage enough? The dry cleaner likely didn’t have $50 million in coverage. If you haven't formed a business entity, you are personally liable. This means your home, car, savings, and other assets could be at risk.
Creating a business entity protects your personal assets by legally separating them from those of your business. If a lawsuit arises, this separation can make pursuing your personal assets less appealing to plaintiffs’ attorneys.
There are many other benefits to forming a business entity, including tax advantages. Forming your entity under Delaware law can offer additional perks. For example, stock held by non-residents isn’t subject to Delaware inheritance tax. This is just one benefit among many.
To explore more about the benefits of forming a business entity in Delaware and how Harvard Business Services, Inc. can help, visit [their website](http://delawareinc.com) or call them toll-free at 1-800-345-2677.
You can find the original non-AI version of this article here: Forming A Business Entity Why Size Doesn t Matter.
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.