More and more, CSLS graduates are taking advantage of our corporation setup services to get their new businesses registered, legal, and up and running. Part of this undoubtedly has to do with convenience. Over the years, we’ve streamlined the filing and paperwork process so that it’s virtually “hands-off” for new contractors.
Another reason for this trend, though, has to do with the fact that more and more contractors are starting to understand the benefits of incorporating their companies. If you haven’t considered it yourself – or just haven’t gone through with it yet – here are three good reasons to talk to our team about incorporating your business right away:
1. Incorporating limits your personal liability. This is probably the most popular reason contractors decide to incorporate, and one of the most important. Because a corporation is its own legal entity, and not tied to your personal assets and finances, corporation owners are usually protected from litigation and collection. That means that, if there ever is a serious problem in your contracting business, customers, employees, and others can’t sue you for your home, savings, and other personal possessions.
2. Corporations have more financing options. Many banks and lenders are wary of giving out loans to small businesses, and especially individual contractors who can be perceived as being in an “up and down” industry. However, there are more financing choices available to corporations, from business lines of credit to issuing new shares, meaning your company could get better access to cash when it’s most needed.
3. Bigger customers sometimes take incorporated businesses more seriously. Whether it’s fair or not, people tend to associate corporations with bigger businesses… and they tend to think of those bigger businesses as being more dependable. For that reason, a lot of big companies like to work with other incorporated businesses, so you could find that more projects open up and become available.
Corporations simply enjoy a lot of advantages in today’s business world that sole proprietors and partnerships don’t. If you’re looking to protect yourself and your personal assets, give your business room to grow, and show bigger customers that you can handle their jobs, incorporating your company might be the perfect step to take.
It’s never been easier to incorporate your contracting business. Contact CSLS today to find out how to get started, or speak to any member of our team and let them point you in the right direction.
