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?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.
Nina L. Kaufman, Esq. is an award-winning New York City attorney, edutainer and author. Under her Ask The Business Lawyer brand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and LexAppeal weekly ezine. She also writes the Making It Legal blog.