Incorporating

All cleaning companies should incorporate their business. This will protect you personally from litigations against your business. If you are not incorporated your client or employees can file legal action against you and anything you own.

Definition

Incorporation is the legal process used to form a corporate entity or company. A corporation is the resulting legal entity that separates the companies assets and income from its owners and investors.

Types of Incorporation

There are several types of incorporation that may work for you. S corporation, C corporation, or LLC.

Due to the complicated nature you should consult with an accountant to better understand each one. They all have pros and cons

TIP

There are various tax benefits based on the incorporation type you choose. Ask your accountant which method will benefit your business.

How to Incorporate

Each state has their own process and fees to incorporate. In most states it is just a matter of filling out the paperwork and paying the fees depending on the type of incorporation you choose. The tricky part is what type to choose and filling out the forms correctly. It is better to talk to an accountant to choose the best route. You can have the accountant to file the paperwork or you can use an online service.