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Incorporating a business will increase your sales



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Incorporating a business will increase your sales

Incorporating a business is an intimidating thing if you haven't done it before, but don't worry, it's not that difficult.  You can simply read some documents written up by your state, county or country depending what entity you have to submit articles of incorporation to.  Each country will be slightly different, but what you'll basically be doing is showing the powers that be you're a business and want to be recognized as one.  I know in the US you have to pay a fee in order to incorporate your business, and if I remember correctly, it was around $300 to $350.

When I started working online I wasn't making too much money, so I didn't worry about incorporating and I just ran my business as a Sole Proprietorship, meaning I wasn't exactly a business but I was making money on my own.  I was my own boss, but I wasn't a full-fledged business just yet, and the government knew this because I was still paying taxes on whatever I made as long as it was over $600.  After I started working online full time and making enough money to quit my 9 to 5 job, I started looking into how I could incorporate my company.

After I incorporated and put my business address on my website as well as my business name, I noticed that people started signing up with me quicker than before.  I'm pretty sure before I was incorporated I was losing sales due to me not running under an actual business name, and not looking as professional as my competitors.  I increased my authority with my visitors and they trusted me a bit more, then signed up Incorporating a business will increase your sales

Incorporating a business can make you more money for several different reasons, and they are:


People see you as an authority
When you incorporate a business name and entity, you are seen as more of an authority within the eyes of a random person.  Not many people will take chances on you if you don't run your own business, so incorporating a business and running everything professionally will increase your sales.

Becoming an actual business means you can now list your company on big business directories where others can find you, and read reviews random people have left for you.  Being on these platforms means you're a company to be noticed as an authority and people can trust.


You will have to do it eventually, anyway
If you're making a bunch of money, at least $600 in a year, you will have to incorporate.  Well, you don't really have to incorporate if you don't want to, but you'll still have to claim all your earnings on your personal taxes otherwise you run the risk of getting audited by the government. 


You will be able to run as a separate entity
You will need to separate personal and business expenses and taxes in order to have everything as a separate entity.  Having everything separate will make it easier down the road if you decide to bring on a partner or hire employees. 

No one wants to work for a sole proprietorship because there's no job security in that.  Working for a company that is paying you regularly and paying taxes is much more easy to accept when submitting applications to businesses you want to work for.


You can sell stock in your company
When you run your business as a sole proprietorship, you can't really sell any stock options to random people who want to invest in your business.  If you have everything set up as a business, a legitimate business with incorporation papers, you can sell stock and bring in investors. 

You will make more money from stock options if your company is super successful.  If you're trying to sell 500,000 stock options and you're only making $25,000 a year, you will get laughed at by any investor.  The only time you will get that amount of stock options sold is if you designed something unique and cutting edge that people are flocking to.


You can sell your business later on
This is one of the main reasons you should be incorporating, other than paying taxes and keeping everything legal.  You can eventually sell your business to someone or another corporation, and transfer everything easier than if you were running it as a sole proprietor.

Selling businesses is a lucrative thing to do because the more profitable your company is, the more money you can sell it for.  A successful business can usually sell for 3 to 5 years it's annual profits.  This means if you are making $100,000 a year through your business and netting $50,000 you could sell your company for $150,000 to $250,000.



In Conclusion
There are many reasons you should be incorporating your company in order to make more money.  I covered the main topics on this and would be interested in anything anyone has to add to this Incorporating a business will increase your sales  I didn't get into too much detail about each point because I would have been here for hours typing up content, but the information I posted is cherry-picked and will inform you well enough Incorporating a business will increase your sales



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Razzy

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potentialwriter

Incorporating a business means registering it as a company on its own. The body responsible for the incorporation of businesses in my home country is known as the Corporate Affairs Commission. Once a business is properly incorporated, it becomes more credible to the people. Banks would be interested in partnering with such a business. People would always be rest assured to buy from registered businesses even from far and near locations. Registering a business as a company is all that every business requires to be successful.



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augusta

I totally agree with you incorporating a business and even going ahead to register it really stands one out and make one an authority in that business.People tend to patronize registered business more because they believe before a business is registered in the corporate affair, it must know its onions and their reputation is at stake if they do otherwise.This was very valuable.



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DarthHazard

I have to agree with you. I think people just trust a registered business a lot more. If you are trading as a sole person without a proper business or brand then people will be a bit reluctant to purchase from you. It's not that difficult to register a business over here in the United Kingdom as well which makes it an even better decision.



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Corzhens

When my husband’s brother put up a business of importing quality steel from Japan, he incorporated his business with only 5 names as the owners. He said that a corporation pays lesser taxes and also gains more credibility and a better image than a proprietorship because a corporation gives an impression that it is big business. I think he is right because his business started small and grew big in a matter of 1 year.



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Pixie06

There are certain products or services I prefer to buy from trusted companies. Nowadays there are many fraudsters imposing as experts and I find it quite difficult to trust someone. I find a company to be more credible.

If you incorporate a company then you will have to pay less taxes. For e.g in my country if businesses contribute to the society through Corporate Social Responsibility programs then they have to pay less taxes. I prefer to help the vulnerable citizens of my country rather than pay taxes.

Selling your shares on the stock exchange will help you to get more funds. You can then develop new projects and grow your business.



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overcast

I have noticed that big business don't rely on the freelancers. And the reason behind it is because they don't have any legal structure. And another thing is that business require some sort of legal standing. And on top of everything it pays to have some strong business. You can see that incorporating definitely helps a lot in that case. You can see that in such case those companies are more likely to give you job or work for the company. That's what is going to increase the sales.



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Everett

Some freelancing websites make you electronically sign, basically stating that you are aware that you are basically a contract. Meaning, you are not part of their company, but rather they have a contract to hire. Within this business model, they do not have to offer any benefits of a full-time or part-time job.

For instance, I live in America. The job industry is VERY crazy. There is more part-time jobs than full time jobs and this is done on purpose. The companies do not want to be responsible for paying for healthcare, and can get away with this by turning 1 full time job into 2 part time jobs. They save money, and it creates a fake job growth.

What i have noticed in regards to the job division as i would call it, is that is it creating fake numbers of statistical data. They say the unemployment rates have dropped as there is more jobs available, when in reality, it's the opposite. People would have to take up 2 jobs to earn the same amount as a full timer would.Some freelancing websites make you electronically sign, basically stating that you are aware that you are basically a contract. Meaning, you are not part of their company, but rather they have a contract to hire. Within this business model, they do not have to offer any benefits of a full-time or part-time job.



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overcast

Yes I recently checked out WaveApps and XERO. And they seem to have this option along with time tracking and signing. So that's something to look forward to. But I still don't see how the big companies don't look for the freelancers. They are more into retainer type of employees. And that is understandable considering they have recurring work. So to manage that they need someone for long term basis.



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Corzhens

Over here, the most important reason for incorporating a business is the tax difference. Corporate taxes are lowe than the tax rate for a proprietorship or partnership, reason enough for a growing business to be incorporated. My husband's older brother incorporated his importation business with 5 incorporators only and 5 stockholders. It was a growing business, he said. And he was right on the saved money regarding taxes.



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overcast

Looks like taxation is high on small business. Is that so the condition for small business means more taxes there? We have less taxes for small business here. Most of the taxes are consumers taxes. So that can be something worth thinking about.



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Everett

Perhaps this could be a reason as to why my sales are low? I am not too totally sure because if you own a website, and you do not even let your customers and/or buyers know that you are a real business, that is basically telling them you paid fees to get your little hobby into the business arena.. im sure they may still earn from you.

However, I totally agree that if it is a real legitimate business, not saying that freelancers and other people who work from home are illegitimate, what i mean is that people would feel more secure in ordering products because they would believe your business is established in the business world. Now, here is my issue with the business thing: taxes. Even though the taxes would be low, there seems to be a lot of taxes. Yes, i do pay taxes however i do not want my tax bracket to go up. In different countries and states there is different tax laws. The state that i am in, the taxes are a bit odd. Once you go over a certain tax bracket, it is almost like it is not worth it anymore, like not worth your time.



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jpyy

This stuff seems similar to copyright, though, I know it's not the same. Do you see incorporation as having a copyright element? Is it included?

Anyway, incorporation seems important, but I'd be looking into copyright first - even for web development stuff, not just stereotypical creative ventures like music lesson websites.



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Everett

In this day and age, you have to be very careful about what you are copyrighting or trademarking. For instance, if you use a open source php script along with a premade website template, and have icons for font awesome then you can not copyright or trademark those assets. You can only trademark and copyright the core branding of the website, but not the entirety of the website itself. Trademark and copyright laws are sometimes in and of itself confusing, so it is best to have a lawyer or attorney (whatever you call it) present during the trademarking and copyrighting.



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DarthHazard

What do you mean by copyright exactly? Maybe it's just me but I can't see how copyright is too relevant in this discussion. Copyright is a totally different thing and I don't think that incorporating a business will automatically mean you are protected, you will have to get things like patents for certain things.



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potentialwriter

Incorporating your business will truly help increase sales. Customers rely much more on incorporated businesses than unincorporated ones. Banks in particular with other financial institutions love to deal in business with registered businesses. They wouldn't mind giving out huge loans to them because they would hope that there is no cause for alarm as far as paying back is concerned.



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