What is a corporation?
A corporation is a type of legal business structure (like a sole proprietorship, partnership, or an LLC). Many contractors and construction companies prefer corporations because they remain separate from their owners, legally speaking. That means your house and personal assets aren’t at risk if someone sues you.
Do I have to incorporate my business if I’m a contractor?
While you aren’t legally required to incorporate your contracting business, it’s probably a good idea anyway. Corporations can do lots of things that individual owners can’t, such as sell shares in their company, take on new partners, and limit the ability of outside parties to make claims against personal wealth and possessions.
Why would I want to form a corporation?
You might decide to incorporate your contracting company because your clients and
potential clients may consider incorporated businesses to have more credibility, reliability, and professionalism than unincorporated businesses. An incorporated business will also allow for more financing options in the future, because you want bigger customers to take you more seriously, or simply because you don’t like the idea of having your personal possessions at risk as part of your company.
What kind of paperwork is involved in forming a corporation?
There are numerous detailed documents (such as Articles of Incorporation and an Initial Statement of Information) that need to be filed with the state before you can incorporate your business. However, when you use our corporation setup service, CSLS will prepare and file these documents on your behalf. You don’t have to dig through the fine print or worry that they haven’t been completed correctly.
Am I required to have partners or employees to form a corporation?
No. A corporation can be as small as one person, or can have thousands of partners, shareholders, and employees. Determining the size of your business is entirely up to you.
Can someone with a sole proprietor business become a corporation? What about a partnership?
A sole proprietor can transfer his or her business license into a corporation. However, a business with a partnership will need to apply for a new license as part of the transition.
Why should I get help from CSLS to form a corporation?
Not only are we the industry’s most respected name when it comes to training new contractors, but we have an entire department dedicated to helping you get your business up and running quickly, efficiently, and inexpensively. If you want the help you need from people who understand your business, let CSLS show you what we can do.
Take the hassle out of incorporating your contracting business – let CSLS handle it for you! Talk to any staff member about our corporation setup services and see how easy it is to get your business up and running in no time! Call us at (800) 481-0310