At What Point In Your Business Should You Incorporate?

By: Stephanie Hetu

If you have been doing business, and are wondering about when you should become incorporated, you should know that at any time, you can make your business official. Perhaps you are a representative for a company, and have been selling their products? Maybe you have a lawn mowing service and are worried about doing business and being incorporated? There is no special time in the business world that you should become a legal business. However, if you see that your business is taking off, and you are wanting to become a LLC or incorporated, there is no reason to put it off.

Becoming a legal business, and having a license to do business in the state you are operating in makes total sense. Especially if your business has really taken off. Being incorporated can protect you and your personal assets. If your business were to be sued, or go into debt, having that LLC at the end of your name would definitely pay off.

With the many different entities to choose from when you become incorporated, you will have some decisions to make. All of the entities offer personal protection to the owners except for one, and that is DBA, also known as Doing Business As. This entity requires that the owners are personally held responsible for all legal matters, as well as debt. However, the other entities all off coverage for the owners, or members of the business.

Whether you are just starting out in business, or have been operating under your personal name for a while, it is never too late to become incorporated. Just be sure that you understand the entities and choose the one that is best for you and your business. If you need some help choosing and understanding the entities, a business attorney will be able to help you with those.

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