The new year may shape up to be a strong year for small business. Borrowing among small firms is up, manufacturing activity - a massive source of employment - is increasing and consumer spending is showing strong growth, among other improvements.
Last month, Congress enacted the Small Business Lending Fund, which is expected to improve the availability of credit to small businesses and loosen lending policies among community banks.
With so much small business activity expected in 2011, it may be time for owners to incorporate their organizations. With more credit, funding and investors running amok, owners may need to protect their personal assets through an entity classification such as an LLC, S corp, C corp or corporation.
"The end of the year is a great time to think about the administration of your business," Charley Moore, founder and CEO of Rocket Lawyer, told Inc. magazine. "Think about your corporate structure and consider if incorporating at this time will give you a new year of different tax treatment, or protect your company as it goes into a new phase."
For those who are unsure how to incorporate or form an LLC, it will likely depend on a number of factors including locations, size of the company, growth prospects and outside investments, as well as assets - both liquid and illiquid. For example, those seeking to incorporate in New York wil likely face a different regulatory and filing process than those looking to create an LLC in California.
Tags : annual filings, create an llc, how to incorporate, llc formation
Posted: Jan 4th, 2011