Incorporating your Online Business
Incorporating online business-is it possible?
Just as entrepreneurs are building corporations in the world around us, it is possible to do the exact same thing with your online business. The same benefits that apply to a building can be a generous offering to your home based business. Incorporating your online business can help you save lots of money and remain safe from debts generated by your businesses. Let's take a look at some things you will benefit from when incorporating your online business with a LLC (limited liability company) license.
Sign contracts in your business name
One thing that can be very helpful in your entrepreneurship is the fact that an llc licensed company can be used to sign and be the responsible for holding up to the expectations of a legal contract. It's important to understand how to sign a contract with your incorporated business. Say you're incorporating your online business and want to sign a contract; your signature should look like this:
EX: Lamont's Viral Globe LLC
The signature block must note the capacity of which you're signing in-
EX: Lamont Williams: agreed this day, July 12th. 2008, by: Lamont Williams, Manager of Lamont's Viral Globe, LLC
It's also important to realize that sometimes you will have liability in some contract signings, whether you're incorporating your online business or not.
These contracts must be signed correctly or you will not benefit from the protection that a limited liability company offers.
Immunity from debt
One of the healthy bonuses when incorporating your online business is the fact that you're immune from debts that your company may generate. In the case of a lawsuit, you and those who partnered with you will be immune. Charge it to the game (business in this case).
One thing you need to realize is that many small and/or medium sized businesses have to be personally guaranteed in order to operate. Some agreements you come upon may be charge to you, and not to the business, even if you're incorporating your online business. This applies to real world companies and Internet based operations. Do your research before you start making agreements and signing contracts.
What is pass-through taxation?
A limited liability company combines a corporation with the flexibility of a partnership. It's the best choice for small-to-medium sized businesses for a number of reasons. One of these reasons include pass-through taxation, which is taxes that have to be paid for firm's and not for firm (if that makes sense). Business taxes are passed through to the taxes of the owner of the company. A LLC protects you from this double taxation.