All businesses, big and small, need protection.  Independent contractors and sole proprietors take the responsibility of their business associations as part of their personal commitment and responsibility.  This means that their assets are at risk if anyone should file claims or lawsuits against their company or business. 

Our government has created opportunities for business owners to separate their own personal liability from that of their company; effectively making their company it’s own individual person and entity.  By incorporating a business, individuals can then protect their own personal assets and separate them from those of the company.  Although this is not always the best option for small independent contractors, incorporating a business or creating a limited liability company can protect individuals from future potential legal conflicts.  This can be especially important for individuals who foresee their businesses growing both economically and geographically.

In the age of the internet, many businesses have interests and clients around the country and around the world.  These companies can grow at an intense and often unexpected pace.  Individuals owning companies that work through the internet as a resource of both commerce and communication should consider becoming incorporated in order to protect present and future assets.

Some of the benefits of incorporating are:

• Since an incorporated business is, essentially, a separate entity from a person, it can be easily sold or transferred to others.  This ease in ownership transfer helps when people wish to cease work or stop affiliations with their business and want to either give or sell their business to another individual. 
• Tax benefits – Since corporations are not, in fact, people, they have a lower tax rate.  However, incorporated companies and corporations can still own shares in other companies with 80% tax free dividends with no limits on losses carried over from previous years. 
• Public sale of stock – Incorporated business and corporations always have the option of “going public” and raising capital through the sale of shares of stock in the company.
• Immortality – well, sort of.  Unlike independent contractors and sole proprietors, corporations continue forever until it is broken apart or collectively dissolved by the owners.  The death of shareholders, owners, or board members has no effect on the existence of the company.
• Protection of Assets – As stated earlier, companies are seen as separate entities from their owners.  Debt and legal conflicts of owners are separate from those of the company.  This means that individuals are not fiscally responsible for the debt accrued by the company or any litigation brought against the corporation.  The same thing holds true in reverse:  Company assets are protected from any legal conflicts or debt accrued by the individual. 
• Credit separation – A company has it’s own credit rating and credit score which is separate from that of any individual owner. 

Incorporating a business requires some degree of paperwork and legal filing.  Each state has its own specific requirements regarding paperwork and fees which can range from $25 to $1000 for filing.  Individuals requesting to incorporate their businesses need to fill out forms requesting names, places, and types of businesses among other details. 

Although every state has agencies responsible for these forms and processes, there are companies willing to perform these tasks for you.  Click & Inc. is just one of many services on the internet that assists with the process of incorporating a business.