TotalLegal on Why Incorporating May Be the Ticket for Asset Protection

Additional responsibilities and legal stipulations come with operating an incorporated business.

Bellevue, WA – March 10, 2018 /MarketersMedia/ —

Although there are numerous benefits of owning a small business and the financial breaks small ownerships may find, it is well known that large corporations have much more power protecting their assets, their personnel, and their finances. The benefits entrepreneurs gain by incorporating their business often outweigh any perceived disadvantages, but that doesn’t mean it’s the best route for every freelancer, independent contractor or “solopreneur” to take. The experts at TotalLegal discuss the key issues to consider when forming a corporation.

It is true that additional responsibilities and legal stipulations come with operating an incorporated business. For example, an owner would be held accountable for additional record keeping requirements and administrative details. They also have a fiduciary duty to act in the best interest of the company, not their own, in order to protect shareholders’ investments. The most common motivation for taking on these tasks and incurring the cost of setting up a corporation is the recognition that the owner is not legally liable for the actions of the business, but there are several other benefits that make the effort worthwhile. Unlike proprietorships and partnerships, a corporation is not dependent on the life of a particular individual or set of individuals, and it can continue to exist indefinitely until it accomplishes its objective, merges with another business, or goes bankrupt. Ownership interest can also be readily sold, transferred, or given away to another family member. Traditionally, divesting ownership can be a cumbersome and costly process consisting of property being retitled, new deeds being drawn and other administrative steps taken. With corporations, all of an individuals rights and privileges are represented by the shares of stock they hold, and on the back of each certificate there is a place to endorse and sign over any shares that are to be sold or otherwise disposed of.

TotalLegal noted that tax reform in the US is giving small business owners additional reasons to consider incorporating. Already voted through by the Senate and the House of Representatives, the Tax Cuts and Jobs Act gives pass-through entities including S corporations and limited liability companies (LLCs) a drastic benefit. Under the previous law, profits from a small business “passed through” to the owner and were taxed at their individual rate, which could be as high as 39.6 percent. The new bill allows for owners of these businesses to deduct 23 percent of their income, resulting in big savings on quarterly and annual taxes.

By providing access to easy-to-use tools and understandable legal information, TotalLegal empowers individuals to rapidly prepare customized, quality legal documents at minimal expense. Founded in 2000, the company holds a market-leading share and now also offers free and discounted legal services performed by attorneys. Audited and tested daily by leading online security company McAfee Secure, TotalLegal guarantees the safety of all client information.

Total Legal – Online Platform for Legal Documents and Forms: http://totallegalnews.com

TotalLegal – Discusses the Transformation of Legal Services in the Digital Age: https://finance.yahoo.com/news/totallegal-discusses-transformation-legal-services-144000620.html

TotalLegal Examines How Online Services Are Disrupting the Legal Market: https://finance.yahoo.com/news/totallegal-examines-online-services-disrupting-175500218.html

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