When should you incorporate a business? The short answer is to do it prior to starting or launching the company. The sooner your business incorporates as an entity formation, the sooner it receives limited liability protection that ensures the safety of your personal and professional assets.
However, is there a “best” time to incorporate a business? For example, is it better for a business to incorporate during a specific season, such as spring or winter? How much of a factor does timing play in business incorporation?
Let’s examine two of the most popular options for incorporating a business: choosing a delayed filing versus incorporating now instead of at a later date.
January 2005 was a turning point in my business. It was the month I incorporated my business.
Before then, I had operated as a sole proprietor. I started my business in 1998 as a freelance copywriter.
However, in 2003 I started getting that restless feeling. I knew I was destined for bigger and better things. I started researching how to take my freelance copywriting business to the next level. And part of that research included me looking into how my business was structured.
Even though my local CPA thought it was a waste of time and money for me to incorporate, the rest of my research told me otherwise, so I went ahead with it.
That was the year I finally broke 6 figures. Once I did that I never looked back.