Launching a small business in Oklahoma is an exciting venture. You want to have every chance of success.
Incorporating your new company offers numerous advantages and can contribute to its long-term stability and growth.
Enhanced credibility and professionalism
The SBA reports that between March 2020 and March 2021, 10,913 small businesses opened in Oklahoma with 10,072 of them closing. Incorporating your business lends an air of credibility and professionalism to your enterprise. Potential customers, partners and investors often view an incorporated business more favorably, as it signifies a commitment to structure and stability.
Limited liability protection
One of the primary benefits of incorporating your small business is the protection of personal assets through limited liability. In the event of business debts or legal issues, incorporation shields your personal assets, such as your home or savings, from potential claims.
Tax advantages and incentives
By structuring your business as a corporation, you may qualify for tax breaks and deductions that can significantly reduce your overall tax liability. Exploring these incentives with a tax professional can lead to substantial savings and increased profitability for your small business.
Facilitated business expansion
Incorporation lays the groundwork for future business expansion. The structured nature of a corporation makes it easier to attract investors and secure financing for growth initiatives. Additionally, the ability to issue stock can be a valuable tool for raising capital and incentivizing key employees.
Unlike sole proprietorships or partnerships, a corporation has a perpetual existence. This means that the business can continue to operate and thrive even if the original owners decide to leave or pass away. This longevity is beneficial for building a lasting legacy and ensuring the continuity of your business.
The advantages of incorporation are well worth considering when starting a new business.