注册公司最大的好处有哪些?为什么要注册公司?

What are the biggest benefits of registering a company? Why register a company?

Today we will talk about: 1) Why do we need Register a Limited Liability Company ? 2) What are the biggest benefits of registering a company?

many Self-employed small business As an independent business model, they can exist in the form of self-employment or limited liability company. When the business is relatively small, the difference is not big, and it can even be said that the self-employment form is more concise and convenient. However, if you want to expand the business to a certain scale, the profit generated by the small business exceeds the annual personal consumption or the business income is unstable, then the advantages of registering a limited company will appear. In addition to the tax saving point of view, it is more worth noting that the company or limited liability company can protect the personal assets of the small business owner to prevent debts or legal judgments from being made against the individual.

Generally speaking, the advantages of a limited liability company mainly include five aspects:

1. Personal Asset Protection

Both corporations and LLCs allow owners to separate and protect their personal assets. In a properly structured and well-managed corporation or LLC, owners have limited liability for business debts and obligations. Generally speaking, a corporation must have more corporate formalities than an LLC in order to obtain personal asset protection.

2. Other reputation and name protection

Add "INC.". "INC/CORP/LTD" after your company name can add instant legitimacy and authority. Consumers, suppliers, and partners generally prefer to do business with registered companies. In most states, other businesses may not form an entity or use the same trade name as your company name. This benefits the business legally and helps with brand building and marketing.

3. Long-term ownership

Add "INC.". "INC/CORP/LTD" after your company name can add instant legitimacy and authority. Consumers, suppliers, and partners generally prefer to do business with registered companies. In most states, other businesses may not form an entity or use the same trade name as your company name. This benefits the business legally and helps with brand building and marketing.

4. Tax flexibility

A limited liability company can defer or even reduce income tax benefits by equalizing personal and corporate income. When an entrepreneur sets up a company, he or she has to pay taxes on both personal and corporate levels. However, companies can avoid double taxation of corporate profits and dividends by choosing more flexible tax regimes.

5. Deductible expenses

Both corporations and LLCs can deduct normal business expenses, including salaries, before distributing income to owners.

Should I set up a company or just be self-employed?

 

We often hear this question from our clients. Usually our answer is as follows:

Question 1: Is the main business of your business risky?

  If you are in the restaurant, medical, personal health or nursing industry, I would usually recommend registering a company; if the business goes wrong, you don't have to worry about losing your home, car or personal savings or property due to business liability.

Q2: How big is your company?

If you are a brand new company working on a brand new project and are still in the process of testing the waters to build a small business, there is no need to register a company right away. You can start by being self-employed.

Q3: Do you have any partners?

If you have two or more partners, I suggest using a limited liability company and establishing a more comprehensive shareholder agreement. The best and longest-term cooperation in the business world is for brothers to settle accounts clearly and put the interest relationship clearly on the table, so that it is easier to sort out problems when they arise.

 

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