2006-11-20 05:23:06 · 15 answers · asked by carlitos way 1 in Business & Finance ➔ Small Business
You need to legally incorporate your company as a separate legal entity
2006-11-20 05:25:04 · answer #1 · answered by Zee 6 · 0⤊ 0⤋
There are many resources to help you when it comes to starting a business. Your state's Secretary of State website is a good place to start. The Small Business Administration (SBA: www.sba.gov) and Internal Revenue Service (IRS: wwwlirs.gov) have a lot of information, too.
To answer your question directly, Inc., Ltd, and Company are used for incorporated businesses. This is a legal business entity that affords you great tax advantages and some protection from liability. You do not really "own" a corporation, you "run" a corporation. You may own shares of stock, but you run the business as the CEO and/or President.
LLC is used for Limited Liability Companies. An LLC affords you protection from frivolous lawsuits and it can be legally taxed as a corporation (this is good because you get the best of both worlds: liability protection and maximum tax breaks).
LP is a Limited Partnership. An LP affords you limited liability protection, but not as many tax breaks as as you get running a corporation.
For more information, you can pick up "Personal Finance 101 - A Beginner's Guide" at www.GoldenRocFinancial.com or Amazon.com. It has a lot of information on basic personal finance that will come in handy owning your own business, and in your personal life, too.
Of course, there are a lot of resources on-line, too.
2006-11-20 05:43:10 · answer #2 · answered by Peter S 3 · 0⤊ 0⤋
If you own a small business, it's a good question to ask, Carlos. Incorporating a small business or sole proprietorship can actually be good for you and your business.
First, becoming incorporated protects your personal assets. If someone sues your business, they cannot go after your personal possessions like your personal checking or savings accounts, your car, or your home.
There are also tax advantages. I know the Company Corporation offers people a free pamphlet that may help you figure out the benefits of incorporating. You can try to find them online.
It's not very expensive for a small business to incorporate either - sometimes it's just a few hundred dollars and they can handle incorportation over the phone.
They also offer a corporate veil (free coverage) up to (I think it was) $50,000. Back when I called them, their number was 800-500-0898. Sorry - I don't know if that's the direct number or not. It's been awhile.
Good luck, Carlos!
Annie
2006-11-20 05:38:33 · answer #3 · answered by Annie M 1 · 0⤊ 0⤋
Inc. means incorporated. You must form a legal corporation in order to use it.
Consult a business attorney to make sure your business is set up properly.
Good luck!
2006-11-20 05:31:05 · answer #4 · answered by Starla_C 7 · 0⤊ 0⤋
There are three main business organizations: Sole proprietorship, Limited Liability Corporation, and Corporation. The inc represents a company that is incorportated or is a corporation. You need to find out what organizational method is best for your needs, and then go from there.
2006-11-20 05:26:57 · answer #5 · answered by auequine 4 · 1⤊ 0⤋
inc. or Incorporated is a legal term meaning there are limitations on the comapny it is always good to have a incorpaorated comapny because it protects you personally from any debt the company incurrs. Through a lawyer it will run from 500-1000 dollars cdn.
2006-11-20 05:25:44 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You can use Inc. when you register your business as a corporation. It's from incorporation.
2006-11-20 05:26:39 · answer #7 · answered by Mark M 2 · 0⤊ 0⤋
If your business is separate and distinct from yourself, then you can call it a corporation, or incorporated. That is, you don't call yourself the owner, but more of the president. But remember, presidents can be out voted, or ousted by shareholders. That is just a few of the pitfalls, but you are safe from bankruptsy if the business goes down. Grab a bussiness law book, and check the pros and cons of corportations vs. proprietership.
2006-11-20 05:30:31 · answer #8 · answered by Biff Stew 3 · 0⤊ 0⤋
Incorporated means that your company is a corporation. There are many restrictions in starting a corporation. You'd likely be better off starting a proprietorship (you being the only owner).
2006-11-20 06:22:55 · answer #9 · answered by Ione 2 · 0⤊ 0⤋
Once you incorporate, you then use the Inc.
The reason to incorporate is to limit individual (your) liability.
An LLC (limited liability company) accomplishes the same with less government mandated paperwork necessary and can be done for about $300.00 through someone like companiesinc.com
2006-11-20 05:25:37 · answer #10 · answered by Anonymous · 0⤊ 0⤋
at the end of the business title... and Inc. means 'incorporated.'
2006-11-20 05:25:23 · answer #11 · answered by Anonymous · 1⤊ 1⤋