Encinitas Business Estate Planning
Don’t Procrastinate – Incorporate
If you own your own business you should seriously think about the benefits of business incorporation.
There are 3 basic reasons to incorporate a business:
- Protect your personal assets from a business liability;
- Tax advantages available to businesses; and,
- To increase the fringe benefits you can provide to yourself and your family.
For instance, if you have an employee who is driving on a small business matter and he hits a school bus full of children, and causes a terrible accident, no matter how much business insurance you may have, in that instance it will probably not be enough. Your personal assets may now be at risk in a resulting lawsuit without proper business incorporation.
Or, what if you could legally reduce your tax liability by splitting your current earnings between taking a paycheck for some of it and then at the end of the year taking a profit distribution from your corporation for the rest, thereby reducing self-employment taxes?
Lastly, and often most importantly, what if you had a corporation and as the CEO approved the lease of a vehicle for yourself so that the corporation paid that payment?
Advantages of Business Incorporations
If you are not taking advantage of these and other legitimate reasons to receive the benefits of business incorporation, you are leaving money on the table or exposing yourself to unnecessary risks. To avoid these risks, reach out to a business estate planning attorney. The benefits of having business incorporations protecting your personal assets, giving you tasks advantages, and improving the fringe benefits for you and your family make it a no-brainer.
If you are a small business owner, I would encourage you to learn more about the necessity of having an Estate Plan in place today.