Incorporating your company is a crucial part of establishing your business and separating it from your personal identity.
This reduces your personal liability if your business struggles financially, gets into legal troubles, etc.
It also puts you in a position to qualify for funding to grow your business.
When you go through this process you are typically going to go from a sole proprietorship to an LLC, S Corp, C Corp
Once this process is done, you are officially recognized by the state in which you operate your business.
Incorporating your company does not take long, but it is important that you do it right and you probably want to bring in some professional help to get it done.
1) Decide what type of business you want to set up based on your business structure.
➡️ An LLC is a great starting point for coaches and consultants. It shields your personal assets from business liabilities, has a highly flexible management structure and flexible tax reporting options.
➡️ An S Corp takes your business into corporation status which can save you money as your business grows. Your business itself is not taxed. Instead, income is reported on your personal tax returns and you do not have to pay corporate income taxes.
➡️ A C-Corp does require that you pay corporate income taxes.
1) Determine if you will have any additional members/managers as part of your company. As a coach/consultant you generally will not initially.
2) Get a registered agent who will receive your important legal and tax documents and send them to you. He or she will be listed on your Articles of Incorporation/Organization document.
3) Determine the business licenses needed to operate within your city.
4) Create your Employer Identification Number (EIN) which is 'like' the business social security number.
How you incorporate your business will have a significant impact on the protection your business has, along with how you are taxed.
I hope this helps!
Want more information? We have the fastest way to create your Business Right NOW!
Business Credit and Real Estate
I am Ghanaian Body building nerd who Loves Teaching about Business, Business Credit and Real Estate!