Six Positive Reasons
To Incorporate

In addition to a higher standard of living and the self-esteem gained from being self-employed, there are several other reasons to incorporate a business. Whether you are a sole proprietor, considering incorporating an existing business or an entrepreneur with a new/old idea, concept, product or service, the following six reasons are especially attractive.

1. Protect Personal Assets: By Incorporating, you make a distintion between your personal assets (home, auto, checking/savings account) and your business. If your business is sued and you are Incorporated, in most cases, your personal assets will have a degree of protection, not afforded you under a sole proprietorship or partnership.
2. Tax Advantage: IRS statistics show that Schedule S Corporations are audited far less than other forms of business organizations. In addition, S Corporate owners are allowed to distribute at least some of their business profits as non-self employment income, thereby avoiding the 15.3% self-employment tax, to which all of the net income of a sole proprietor is subject. S Corporations can also reduce the amount of tax that is due to the IRS, by deducting any costs or expenses that are related to the business in the pursuit of profit(operating expenses, and advertising(this website), salaries, bonuses, medical and retirement payments paid to employees).
3. Insurance Advantage: Because liability is limited only to corporate assets, insurance companies are able to insure incorporated businesses at lower premium rates because of lower risks.
4. Increase Credibility: A business that has "Inc", "Company", or "Corporation" after its name is generally an indication of a higher degree of professionalism and seriousness of purpose.
5. Ability to Raise Capitol: The corporate form of business, whether new or established makes it easier to raise capitol to expand, or for any other reason, by selling shares of stock in the company.
6. Corporations are Perpetual: In addition to being the oldest form of business structure, corporations are perpetual entities that continue to live on, even after the original owner(s) dies or decides to sell the business.

For-Profit Domestic S Corporation

The S Corporation gets it's name from Subchapter S of the U.S. Internal Revenue Code. S Corporations are known as pass–through tax entities: Which mean they file an informational tax return and pay no income tax at the corporate level. Instead, profits/losses of the business are “passed–through” the business and reported on the owner's personal tax returns. Any tax due is paid at the individual level by the owners.

Most Illinois based For–Profit S Corporations can be incorporated, under the Illinois Business Corporation Act of 1983, within the meaning of Subchapter S of the U.S. Internal Revenue Code, for under $800.00, including local, state, and Federal statutory filing & registration fees.

Not-For Profit Tax–Exempt Corporation

Most people are surprised to learn that some of the wealthiest business, educational, governmental, benevolent and religious entities are Not–For Profit. They include, but are not limited to: The Catholic Church, the Salvation Army, the Red Cross, Goodwill Industries, Alcoholics Anonymous and every local, state &federally funded educational institution in the country. Add to this list the city of Chicago, the county of Cook, the state of Illinois, and the United States Government. None of the above named entities are poverty stricken! Forming a Not–For Profit Corporation at the state level however, does not automatically grant the corporation tax-exempt status. To qualify as exempt from sales & service taxes, and from Federal and local income taxes, an organization must meet requirements set forth under Section 501C3 of the U.S. Internal Revenue Code.

Most Illinois based, Not–For Profit Corporations can be incorporated, under the Illinois Not–For Profit Act of 1986, within the meaning of Section 501C3 of the U.S. Internal Revenue Code for under $1,500.00, including local, state, and Federal statutory filing &registration fees.

Registered Agent Service & Fees

Whether For–Profit or Not–For Profit, corporations in Illinois are required to maintain a Registered Agent within the state of Illinois. The name and address of the Registered Agent is placed into the Articles of Incorporation. The primary purpose of the Registered Agent is to receive official written documents (tax notices, service of process, etc). The documents are then promptly forwarded, by registered or certified mail to appropriate corporate officials. This service is provided thru a written contractual agreement. Annual service fees are $125.00, For-Profit and $250.00, Not-For Profit. Now, you know who we are, what we do and how to contact us.

• Welcome  
• Keys to Success 
• 6 Reasons to Incorporate  
• About Murray  

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