Posted on Tuesday 26 May 2009
The current global recession has had a devastating effect on businesses. Many organizations have to be closing their shutters due to a fall off in business and the inability to source funding. This has had a negative effect on the income generating capabilities of state governments, as a large proportion of their income comes from taxation and licensing of these organizations. To counter these effects and launch an attempt to kick-start their economy, state boards are developing various mechanisms and strategies to encourage incorporation of companies.
Initiatives
Not long ago, going to government offices to process documents was a whole day trip. You had to take along some refreshment and some form of entertainment to occupy your time while waiting in a never-ending line. With the advent of the recession and fall off in business, governments have switched to outsourcing these duties by turning to the internet. They have successfully created a new industry for agents certified by the necessary bodies to prepare and file applications on customer’s behalf.
In addition, customers can file their documents via the secretary of state’s web site for any type of corporation. All associated fees are payable via electronic payment systems. These measures have resulted in a two-fold positive effect for both the government and the customer. The government saves millions by reducing their staff levels as well as the wear and tear on their facilities, while customers enjoy the ability to process their documents in a more relaxing environment.
Some states have also relaxed some of the requirements for specific types of organizations. These include:
• No age limit on members or share holders
• The restrictions of the number of LLC members
TAGS: Business Incorporation Service,
Business Owner,
Incorporate a Business,
incorporation forms,
Recession,
Small Business,
small business incorporation
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Posted on Monday 2 March 2009
In today’s world, it is becoming a norm to start an independent business and be your own boss; however at times business owners are unaware of the importance of incorporation. When starting a small business, entrepreneurs need to protect themselves and their assets, which is where incorporation comes in. If a company is not incorporated and something goes wrong, the company’s owner risks losing everything he owns, including personal possessions.
According to Lynn Hamilton on her work z post, there are several main reasons for incorporation. Protecting personal assets is the most important. This separates a business owner’s personal belongings such as houses, cars or bank accounts from the business itself. That way if the business is sued, personal assets will be more protected.
A corporation can allow for more tax deductions. This is often different depending on the location of the business since states all have different laws, however incorporating can reduce the amount of taxes due per year and can allow for specific write off and deductions related to the business. Things such as advertising, travel or even food expenses can create tax deductions for a business owner.
Credit is another main reason for incorporation. Incorporating allows a company to have its own credit score without being affected by the owner’s personal score and also allows entities to continue even if an owner dies or decides to sell a business.
There are so many important benefits to incorporating your business and like Monday mornings or driving through traffic while you’re already late, it may not be a fun part of entrepreneurship, but it is a useful and necessary part of business owning and should be taken care of as soon as possible, if not already.
TAGS: Business Incorporation,
Business Owner
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