If you’re like most small business owners, you probably started your operation as a sole proprietorship. This company structure is the simplest and least costly to set up, with less paperwork required. However, sole proprietorships are not separate legal entities from their owners. You report your share of the company’s earnings on your personal income taxes, and you are legally responsible for the business’s debts and liabilities. In general, federal and state corporate income-tax rates are lower than personal ones. One of the main reasons frequently cited for incorporation is to protect a company’s owners and their personal assets from any legal liability associated with the business. Incorporation is a smart decision for every small business owner.
To learn more, contact a Nevada Corporate Headquarters representative at 1-800-508-1729.