To incorporate or not to incorporate? That is the question.
I read that incorporating your business is not worth it if you only make $10,000 to $12,000 per year. Is it true that the real breaks don't start until around the $30,000 per year profit mark? How does a business owner know when he would benefit from incorporating?
Opinions expressed by Entrepreneur contributors are their own.
There are benefits far beyond taxes that would lead you to incorporate -- such as protecting your personal assets. It doesn't matter how little you earn, if you are not doing business as a corporation (or LLC), your personal assets are at risk from judgment creditors.
If you're only earning $10,000 a year from your venture, you also have other important issues, namely, have you done the right business planning to make your business a success? If you're serious about moving forward with your business, speak to an attorney and an accountant to determine the business form (corporation or LLC) that's right for you.
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