Should I incorporate or LLC my business?
James Williams
Published Mar 03, 2026
Because a corporation or a limited liability company is considered a distinct legal entity with no ties to the individuals who own it as a legal structure, it is a very attractive option for small business owners. Incorporating or forming an LLC does require some work and some costs both to set up and to maintain.
How do I incorporate my small business?
How to Incorporate Your Small Business in 7 Steps
- Choose Your Business Name. 10’000 Hours / Getty Images.
- Identify Your Location.
- Select the Type of Corporation.
- Name the Company Directors.
- Determine the Type of Shares.
- Obtain a Certificate of Incorporation.
- Process and File the Paperwork.
Which is better an LLC or an S Corp?
While it may depend on your specific circumstances, in general, a default LLC tax structure is better than an S corp for holding rental properties. This is because rental income is typically considered passive income, which means it’s not subject to self-employment tax.
What should I ask before I incorporate my business?
The first question you should ask after deciding to incorporate, is whether you need a federal or provincial corporation. One of the most frequent mistakes we see being made by business owners that incorporate online is incorporating the wrong type of corporation for their circumstances.
When should writers incorporate or create an LLC?
Some people have heard that incorporating as an S Corp or creating an LLC will protect them from lawsuits and provide tax benefits. So let’s go through when it makes the most sense for writers to incorporate or create an LLC.
How to create a limited liability company in Michigan?
Create a corporation or limited liability company? First, call the Corporation Division, Bureau of Commercial Services of the Department of Licensing and Regulatory Affairs (LARA) at 517-241-6470 to confirm that another Michigan corporation, limited partnership, or limited liability company does not have the same business name you have chosen.
When do you incorporate with a law firm?
When you incorporate with a law firm, your corporation will typically be set up with Articles of Incorporation that include a wide range of share classes. Often times there are 15-20 different classes of shares authorized at the time of incorporation.
