ANIMATION 2D JOBS

When you incorporate your business, you may receive tax-free benefits as an employee such as medical insurance, life insurance, a retirement plan, education, work-related travel, and client or employee entertainment. Most states allow for these benefits even if your corporation only has one employee.

Liability Benefits.

1. Liability is another major benefit of forming a corporation. Because a corporation is a legal entity of its own, it is similar to person, which means it can be sued or sue another. The shareholders are not held responsible for the corporation's obligations and debts. In a sole proprietorship or partnership, you could lose everything you have (including your home and personal assets) if a lawsuit is filed against your company.
2. Corporations Live On. After you've retired or passed on, your corporation will still exist for another to continue the business. This is possible because a corporation doesn't rely on one or two persons to be an operating business. It is a separate legal entity that can be operated by a group of shareholders and board of directors.

Financial Benefits. When you incorporate, you give your company the ability to grow financially. It's much easier to raise money for a corporation, and shareholders can help make things possible that you as an individual cannot accomplish on your own. The business will have more opportunity to grow and become a great success as a corporation.

Forming an LLC

Even when considering all the benefits of incorporating, you might still be hesitant about this decision. Forming an LLC (Limited-Liability Company) is another option. When you form an LLC, you are creating a legal entity for your business just as with a corporation. You are not legally liable for your company's debts, but the tax requirements are different than those of a corporation. Be sure to study the differences between the two before making a decision. LLC formation might be the right avenue for your small business.