JOBS AT MEMPHIS

Corporations are able to deduct many operating expenses without restriction. They can also split income with shareholders, a process that often lowers the overall tax bracket for the corporation. The term for this is called "shifting." Corporations are also less susceptible to IRS audits whereas sole proprietors are targeted frequently for audits.

Corporation Benefits for Employees.

1. 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.
2. Liability Benefits. 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.

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.