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Incorporation

2. Reasons to Form a Corporation

Before there were corporations, investors in a business risked everything if the venture turned south. When the company lost money and didn't have the cash to pay its creditors, the partners had to make up the difference with their own money. With the advent of the corporation, investors could be shielded from this type of liability by forming a corporation, and as a consequence, more people were willing to invest in business ventures.

Today, corporations have become the standard for many business entities. Not only can the formation of a corporation as a business entity help reduce your taxes, but it can also provide peace of mind by protecting your personal assets.

Incorporate your business today

If you decide to incorporate, LegalZoom has made the process of forming a corporation an easy and affordable one. Simply answer a few questions online and LegalZoom will generate the legal documents you need, and we will even file the Articles of Incorporation with the Secretary of State (or other appropriate state agency).

If you decide to form a corporation, our Education Center provides general information on corporations. We outline their advantages, disadvantages, and how they compare to other business structures, including the limited liability company (otherwise known as an LLC). If you are considering forming a corporation, we urge you to carefully read these sections before deciding which business entity is best for you.

To learn more and to speak with a representative, please call us at (888) 381-8758.

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