Business Simplicity—
A Matter of Efficiency and Growth Potential
Many
small and growing business owners are bogged down in the day
to day activities that are required to keep their business
running strong. Wouldn't you jump at the chance to be more
efficient at those daily tasks and provide more growth potential
for your business? The structure of your business provides
the building blocks necessary for you, the owner and rainmaker
of your company, to focus on the important areas of your business: efficient
management and business development.
Incorporation provides a streamlined approach to maximize your growth potential and the longevity of your business. Incorporation is the beginning of a new way of looking at your business. It is creating a relationship with money and your business that takes on an entirely different meaning. Once a small business that is already in operation, or a new business that is getting ready to begin operations incorporates, an asset of value has been created. Once incorporated, you have created and formed an entity of value that can be sold, invested in, contract for business, and best of all, make money. Now that your business structure has been simplified, you can spend more time and energy focusing on profit generation.
For
small business owners, one of the most surprising aspects
of corporate formation is the ability for the corporate structure
to ensure that you create a budget, pay yourself, pay your
taxes and plan for your future. A corporate structure allows
you to be complete with your goals and be out in front of
your daily, monthly, and yearly needs. It also allows you
to save money. You will be able to keep track of your business
expenses and related endeavors that often get lost as a sole
proprietor. In addition you will be able to deduct your self
employment taxes that may have simply been a cost of doing
business for years.
Often,
the myth of corporate formation being costly, complex, and
too hard for a small businesses to understand, is perpetuated
by those who have not heard the secrets about the simplicity
that corporate structure can add to your business. Corporate
formation is a streamline way of simplifying your business
structure, adding a layer of liability protection, and continuity
to your business. Most hard working entrepreneurial business
owners are not looking for the easy way out—they are
looking for the most efficient, cost effective, and sensible
way to run their business. Forming a corporation allows a
small business owner to maintain management and control through
the election of a board of directors and appointment of officers.
Liability protection is increased and shareholders, directors,
and officers are not liable for the debts of the corporation
unless they personally guarantee those debts. This allows
individual owners of the corporation to build individual wealth
with lower risk and greater asset protection.
Interest
in a corporation is easily transferrable. There are no statutory
limits on the right to transfer stock and transfer does not
affect the status of the entity. While, stock transfer can
be restricted by the Articles or Bylaws of the corporation,
these limitations are up to you—the creator of the enterprise.
This allows you to determine when and how you choose to transfer
or sell your business. It also allows you the ease of generating
additional capital for your business through investors. This
can be done through capital contributions by share holders
and loans from third parties via equity, debt or hybrid securities.
Another important factor for a corporate shareholder to realize—forming a corporation can be forming a legacy. A corporation continues indefinitely until terminated by the affirmative act of its shareholders or by judicial decree. Corporate existence does not terminate when the initial entrepreneur decides he or she would like to be less involved in the company. A corporation can continue to be a money making adventure for its creator well into retirement. This simple and easy to understand structure can provide wealth for a lifetime.
