Benefits of Incorporating

There are numerous benefits to incorporating your business regardless if you are a one person operation or if you have employees. Some of the advantages of forming a corporation or Limited Liability Company (LLC) include:

  • Protection of your Personal Assets. If you are a sole-proprietor and a lawsuit or claims are leveled against your business, you are exposed to liability both with your business and personal assets. But corporations allow owners to separate and protect their personal assets so they should have limited liability for business debts and obligations. This remains one of the most important benefits to incorporating.
  • Additional respectability and credibility. Adding “Corp.”, “Inc.” or “LLC” after your business name can add instant prestige. Clients and vendors may prefer to do business with an incorporated company.
  • Name protection. Other businesses in Washington State may not file your exact corporate or LLC name.
  • Lower Taxes. In certain instances taxes paid by a corporation are lower than if your business was a sole-proprietorship.
  • Perpetual existence. Corporations and LLCs continue to exist even if ownership or management changes. Sole proprietorships and partnerships just end if an owner dies or leaves the business. Forming a corporation ensures that your company’s legacy can remain, as well as continue to provide employment and services for clients should any changes in ownership occur.
  • S-Corporations. A corporation can avoid double taxation of corporate profits and dividends by electing Subchapter S tax status with the IRS.

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Fees for Establishing a New Corporation

The total fee for creating a new corporation is $1,200. This fee includes filing the Washington State Master Business Application and the necessary form for an S-Corporation.

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