Business Law, Legal

Reasons Why a Small Business Should Incorporate

Many small business owners launch their companies as sole proprietorship in which they and their businesses are essentially the same. However, changing the format of a small business to a corporation or a Limited Liability Company (LLC) can offer a range of advantages for entrepreneurs.  Most notable is that a corporation or LLC protects entrepreneurs’ personal assets in case debts or legal judgments are claimed against the business.

The advantages of incorporating a small business include:

No. 1: Personal asset protection. Both corporations and LLCs allow owners to separate and protect their personal assets. In a properly structured and managed corporation or LLC, owners should have limited liability for business debts and obligations. Corporations generally have more corporate formalities than an LLC that must be observed to obtain personal asset protection.

No. 2: Additional credibility and name protection. Adding “Inc.” or “LLC” after your business name can add instant legitimacy and authority. Consumers, vendors, and partners frequently prefer to do business with an incorporated company. In most states, other businesses may not form an entity or use a trade name that is the same as your corporate name. This benefits the business legally and helps in brand-building and marketing.

No. 3: Perpetual existence. Corporations and LLCs can continue to exist even if ownership or management changes. Sole proprietorship and partnerships just end if an owner dies or leaves the business.

No. 4: Tax flexibility. A LLC is taxed at the same rate as a sole proprietorship while providing limited exposure to personal liability. Though profit and loss typically pass through a LLC and get reported on the personal income tax returns of owners, a LLC can also elect to be taxed as a corporation. When an entrepreneur sets up a corporation, he or she is taxed on both the individual and corporate levels. However, a corporation can avoid double taxation of corporate profits and dividends by electing Subchapter S tax status.

No. 5: Deductible expenses. Both corporations and LLCs may deduct normal business expenses, including salaries, before they allocate income to owners.

Should My Business Incorporate or Form a LLC?

I am often asked this question.  It is important to consider the following:

1. Corporations and LLCs are both separate legal entities (business structures) that enjoy certain protections under the law and important benefits. Most people form a legal business structure to safeguard their personal assets.

2. Incorporating or forming a LLC allows you to conduct your business without worrying that you might lose your home, car, or personal savings because of a business liability.

Food For Thought, Immigration, Inpsiration, Journal, Legal

Adding Practice to Theory

I no longer watch news and continually work to cut down my consumption of social media. More and more, Facebook feels like a place of shouting opinions and personal bias. There are days I dread opening the site for fear of the messages that will come barreling towards me.  I walk around, and I see people lost in their phones. Couples eating together with both looking at their phones rather than engaging in conversation. It feels to be a lonely life when so much passes me by. Yet I know that getting lost in helplessness is not only a quick road to failure, but one that fosters indifference.

Last week, I spent four days learning about Immigration Law Practice. While the theory portion absolutely overwhelmed me, there was a growing conviction inside me that with the political climate the way it was, it behooved me to take part.  What scared me is how easy it is for permanent residents to lose their green cards, and how difficult the current administration has made it for immigrants to come or stay in this country.

And so I put practice into place for a new area, and I plan to grow. It is the only way I know to live.

Happy Tuesday!

 

Food For Thought, Inpsiration, Journal

Death by Suicide

It’s been an emotional week, but one also of deep learning. More and more, it’ become clearer to me that it is important to stay connected with others. I don’t know when I began thinking that my personal vision did include others. I convinced myself that I had to withdraw and just focus on my tasks to be of value to life.

I forgot that connection takes time, patience and work. It is important to reach out to others if nothing else but to hear another voice, another perspective and perhaps be of service if they are dealing with difficult emotions.

There was a time every month when I was younger that I would reach out to every person in my contact group and just check in. I never had an agenda except just to connect and hear what others were up to. I honestly miss that feeling of connection. I am proud of all that I am getting done, but I know realize there is much more to life than getting things done for myself. I get to be a resource or allow others to do the same for me. I get to be connected, to be in service, to do more than just pass the days not reaching out.

And so I begin today. No more just getting things done. It is time to get out and be there for others.

Food For Thought, Inpsiration, Journal

When Words Don’t Come

Another loss. Another funeral. Another chance at regret, and what if’s. This one a bit different. A life gone too soon. So much pain that the person left on their own terms rather than waiting for life to happen. I see the suffering left behind, and it boggles the mind. So much pain and I pray for peace for them and the person. How alone they must have felt.

As I grow older, it hits me that this will be nothing new. Death a new part of life that I can no longer pretend not there. I get to either prepare or keep being devastated. yet it hurts so much to live in that moment, and so I continue on the path of avoidance and ignorance until it happens again, and I come face to face with the reality that Death will keep happening, that I get to cherish what I have now or I will choke on the regret.

And so I start today with acknowledging that life has a beginning and an end. The best I can do is to make the middle count with loved ones, my vision, and picturing the legacy I wish to leave behind. But never lose sight of the present, of the chance to do over, and to be hug tightly the ones closest to me. To never, ever forget that time is short here. That all that matters is how we made people feel not what we did for them.