Pros and Cons of Turning Your Small Business into a Corporation
From greater financial resources to lessened legal liability, there are plenty of reasons to become a small business corporation. However, the move requires careful consideration.
Pros
- Limited personal liability
- Easier access to capital
- Perpetual existence
- Transferable ownership
Cons
- Double taxation potential
- Increased administrative costs
- More regulatory oversight
- Complex record keeping
Is it right for you?
Choosing the right structure is a foundational decision for your business legal strategy. Whether you are avoiding legal risk or planning for future scaling, ensure you balance these factors before filing your articles of incorporation.