There are many factors that you’ll need to consider before choosing to incorporate your New York business. For instance, choosing this type of structure may not be ideal if you’re looking to keep paperwork to a minimum. However, it may be in your best interest to do so if you’re looking to raise capital or limit your liability.
The potential benefits of incorporating
Opting to run your business as a corporation may make it easier to attract customers. This is because your company will feel more like a professional outfit as opposed to a single person offering services on the side. As a corporation, you are allowed to retain excess capital, which may help to reduce your personal tax rate. Finally, if a judgment is rendered against your company, a plaintiff is only allowed to seize assets that belong to the organization itself. A business formation law attorney may provide more insight into the potential benefits of incorporating.
The potential drawbacks to incorporating
If you run your business as a corporation, you’ll need to adhere to strict bookkeeping requirements. This means that you’ll likely need to hire an accountant or invest in quality computer software programs. In the event that you want to dissolve the company, you can’t simply walk away from the business. Instead, you’ll have to notify state officials that the company is no longer going to operate. The state may require you to pay a fee to cease operations.
Incorporating your business is a consequential decision that shouldn’t be taken lightly. Ideally, you will have the input of an attorney prior to choosing an organizational structure.