Why Incorporate Your Business?

The WHY of incorporating your new business is the easy part.

Two reasons that convince most people are these:

1. Creating a business entity separate from yourself is like making a buffer between you and your personal assets – car, boat, house, savings, stock, etc  and the business. If you’re a sole proprietor or in a partnership you can have your clock cleaned as a result of a court case against your business. You might lose everything that you’ve worked hard to get. On the other hand, if you incorporate you’re protected from having your personal assets taken in most cases. This is the PRIME reason for incorporating your business.

2. Saving money on taxes.

We all realize we need to pay taxes – but, if we can legally save money while paying taxes – what’s better than that? Incorporating your business allows you to take advantage of specific IRS tax breaks that will keep money you have in your pocket, not in a check written to the IRS. This is the number 2 reason for incorporating your business.

These two reasons alone should be impetus enough to get you moving to incorporate your New Jersey business.

There are other advantages to incorporation, and specific advantages you can explore more by reading about LLC’s and Subchapter S corporations (S-Corporations).

Creating a corporate entity gives your business other options like introducing a higher probability that angel or other investors will loan you money.

Getting incorporated in New Jersey is easy.

1. Choose a type of corporate entity. This is a legal entity that is taxed according to IRS statutes. The EIN / Federal Tax ID number is like a social security number for your business. When you have it – it means you as a person are separate from your business according to the IRS. Each has tax obligations and rules to follow. Luckily for you incorporation provides tax advantages in many cases – all you need to do is take advantage of them.

2. Come to StartNewJerseyBusiness.com and fill out the appropriate form.

3. Choose any other services, like registered agent if you don’t live in New Jersey or know someone that will act as registered agent for your NJ business. Add a corporate kit because you’ll be buying one anyway and we have a deluxe kit for a very fair price.

4. Pay with a credit card using Paypal or Google Checkout. Or even call us on the phone – up to you.

If you have any questions about becoming incorporated in New Jersey we have a toll free number: 888-905-7380 where you can reach us.