Incorporating a business will increase your sales

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 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   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



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Razzy