When you Should Incorporate Directory Presented by Atlanta CPA

Knowing When to Take Your Business to the Next Level Directory Presented by Atlanta CPA

Incorporating in Georgia is still one of the best things you can do as you plan for your long-term business's success. Incorporating gives you several advantages that you otherwise could not enjoy.

Establishment of Your Business as Being Legitimate: Incorporating tells the business and social community in which you thrive that you are serious about your operations and that you have taken initial requisite steps to get your business started. All of us want to know that the products and services we buy from others will be supported, so it is with those who buy from us. Many governmental agencies will not even buy or lend to those who are not incorporated and an informed consumer is always looking esoterically for indicators showing a seller's commitment to their product/services.

Personal Liability Protection: Our world has become full of people who are looking to make a fast dollar and there are those about who are quick to find any get rich method they can find. Nowhere has this become more prevalent than in our court system, which was originally intended and set up to right a wrong. However, now our courts are full of frivolous cases where greed rather than fairness are the watchword. Although there is no such thing as perfect protection you can help limit your exposure by acting in good faith, using good judgment and wise discernment, and incorporating to help limit your personal assets from being exposed to corporate liability.

Legal Entities are Taxed Differently: LLC's, LLP's, and Partnerships are often the entity of choice for real estate ventures as real estate can be moved in and out of them without having to pay any capital gain taxes. C Corporations are ideal for those who will have over one hundred shareholders or by nature of their business and capitalization structure need multiple classes of stock. S Corporations are well suited for business owners where, after a reasonable salary is paid to all of the active owners, shareholder distributions are legally devoid of FICA/Medicaid taxes.

Incorporating is the most important tax decision you will ever reach in your business and making it along with a trusted adviser is your best choice. Having served as a CPA in the Atlanta, Georgia area for decades I have seen many business owners who were either C Corporations or LLC's, who from a tax savings could have legally saved tax dollars by converting over to an S Corporation for tax purposes. If an LLC, for example does this, it will remain an LLC for all legal issues and with the Secretary of State's office, but will be solely recognized by the IRS and respective states where the company transacts business, as an S Corporation.

To read more about John Dillard CPA and his CPA practice, business consulting and IRS representation visit http://www.hiscpa.com/

To read about his books A Voice of One, Overcoming Life's 9/11's and Charleston Dawn and his speaking ministry visit http://www.john-dillard.com/