1. If an individual chooses to conduct business without incorporating, they are subject to unlimited personal liability with respect to any debts or liabilities that the business incurs. In other words, creditors of the business can hold the owners personally liable for business debts, seizing their home, savings, or personal assets. If the business gets sued, the owners would be personally liable. On the other hand, if an individual incorporates and manages their business properly, they are usually shielded from any personal liability.
2. If an individual chooses to conduct business without incorporating, after they pass away the business ends or may become involved in various legal entanglements. On the other hand, a company or corporation is a distinct entity and is considered to have a life of its own – it may continue regardless of what happens to individual owners. Additionally, ownership of a corporation can easily be transferred through the sale of stock.
3. If you are looking to raise capitol for your business, funding can usually be raised more easily via the sale of stock once you establish your business entity. If you choose not to incorporate, you may find that investors are weary to contribute money because if things go wrong, they could be considered personally liable for debts or liabilities the business may incur.
4. Finally, corporations may offer significant tax advantages to sole proprietorship. You should always check with your CPA for any specific tax deductions you or your business entity may qualify for, but corporations usually can deduct such expenses as health insurance, life insurance, business travel and entertainment, as well as provide an increased tax shelter for retirement plans.

How long does the incorporation process take?
Start to finish, you should be fully incorporated in about two weeks.

Which entity should I form?
Some of the main differences between LLC's and corporations are:

• Corporations are authorized to issue stock, and are owned by stockholders. LLCs, on the other hand, do not issue stock - they are simply owned by the members and/or the managers of the company. If you plan on selling stock to investors or plan to take your business public, you should probably consider a corporation.
• Corporations have more formal requirements than LLC's to stay compliant. For instance, corporations are required to hold annual meetings and keep written minutes. The requirements for LLC's, on the other hand, are far less rigorous and require significantly less paperwork.
• Corporations are distinct taxable entities (except for S-Corporations). Therefore, they must pay taxes on their profits at a corporate tax rate. LLC's, on the other hand, are by default considered "pass-through" tax entities, and the profits or losses generated by the LLC is reflected on the personal income tax returns of the owners. If you wish to avoid the "double-taxation" issue, you should probably consider an LLC or an S-Corporation.
• Certain business expenses, such as health care expenses of the owner, are usually not deductible by an LLC or S-Corporation, but would be by a C-Corporation. We suggest you always consult your CPA on deductions that would be specific to you and your business before choosing the entity that is right for you.
• As opposed to corporations, LLC's provide a great amount of flexibility with regard to income distribution. While corporations must split profits and losses evenly on a dollar per share basis, LLC's may distribute income and loss as desired.

How do I transfer real estate to my company?
We find that many of our clients who hold long term rental properties choose to do so with an LLC. If the LLC is formed and managed properly, owners can limit their potential liability if there is a lawsuit, such as a "slip and fall" injury by a tenant.

Once your LLC or corporation is formed, FormACorpGA.com can help you transfer any real estate you own into your newly formed business entity. The transfer will require a limited title search by a title company, and then the filing of a Quitclaim Deed at the County Courthouse where your property is located. Oftentimes you will want to purchase owner's title insurance to insure against any defect in title. For the most part, the entire process is relatively cheap and takes only a few days. If you are interested in transferring property, let us know when you begin the incorporation process and we will be happy to assist you on the transfer.