Incorporating a small business may provide better legal protection with regards to personal liability, when compared to owning and operating a sole-proprietorship or a partnership. You do not need to be a large company to incorporate a business and you may be a small business or even self-employed. By incorporating your small business you can better your personal assets (home, personal assets, etc.,). Additionally, one can incorporate a small business and may elect to be an S-Corp with regards to federal tax reporting and filing, in order to benefit from lower personal income taxes and lower or no self-employment taxes (if one is self-employed)depending upon each case and how one chooses to structure, report and file their federal income taxes. For specific issues with regards to tax compliance, reporting, tax filing, please contact a professional tax consultant in your state/jurisdiction after you Incorporate your business online but as a startup business it is important that you focus on starting your business because if you don't have any revenues or only have small revenues, you don't need to spend time much on tax issues and tax reporting.
Entity Comparison :Incorporation or LLC? C-Corp or S-Corp? Sole-Proprietorship or Partnership?