Why Should You Form A Corporation?
Forming a corporation can help reduce your taxes and give you peace of mind by protecting your personal assets. At Spiegel & Utrera, P.A., we want to help you incorporate…
Written by Spiegel & Utrera, P.A.
- Published
- January 2, 2015
- Updated
- August 11, 2026
Forming a corporation can help reduce your taxes and give you peace of mind by protecting your personal assets. At Spiegel & Utrera, P.A., we want to help you incorporate your business, so we have put together the main advantages of doing it and how you can enjoy the benefits.
Protection From Personal Liability
The most important reason to incorporate is to protect yourself from personal liability.
When you incorporate, you are forming a legal entity that is separate from yourself as an individual. The corporation has powers vested in it that let it make all the decisions an individual can make. For example, the corporation may enter into leases, borrow money, and buy goods and services on credit, and in each case you are not personally liable for the transaction.
If a problem arises, the only recourse is against the corporation. Similarly, if anyone files a lawsuit over an action arising from the business, that party cannot go after your personal assets such as your home, car, or boat, as long as you comply with the formalities of a corporation. That gives you peace of mind, knowing your personal assets are safe.
Tax Flexibility When You Form a Corporation
One of the greatest advantages of forming a corporation is that you can elect how it is taxed. You could avoid the double taxation of corporate dividends and profits by choosing Sub Chapter S tax status.
A Corporation Acts Like an Individual
Because the corporation is its own legal entity, it can act much like a person in the marketplace. It can sign leases, take on financing, and transact on credit, all in its own name rather than yours. That separation is exactly what keeps your personal finances walled off from the business, and it is the practical reason incorporation protects you the way it does.
We Can Help You Incorporate
Spiegel & Utrera, P.A. lawyers are qualified and highly experienced in forming corporations, Limited Liability Companies, and Sub Chapter S corporations. For over 20 years, the firm has served its 260,000 clients with the utmost respect and quality service. Our prices are among the lowest in the industry, and we guarantee top-rated service.
To learn more about incorporating a business, call (800) 603-3900 or visit our incorporation page.
This article is provided for general information only and is not legal or tax advice, and reading it does not create an attorney-client relationship. The right entity and tax election depend on your specific situation and vary by state. Contact Spiegel & Utrera, P.A. for guidance on your business.
