Washington DC incorporation can protect your assets from lawsuits. When you incorporate in Washington DC and maintain your corporation properly, following all paperwork requirements, then it will be treated as a separate legal entity. Your corporation will be required to file an annual statement along with a very small fee to keep your company in good standing with the Washington DC office.
The tax advantages of incorporating in Washington DC allows deductions available to corporations rather than unincorporated businesses. For example, the IRS gives preferential treatment to businesses that are incorporated with regard to deductible employee benefits and tax deductions. By incorporating, you can own and be employed by your own corporation at the same time. No more self-employment tax filings to worry about.If the company is operated properly and the corporation is sued, only the assets of the corporation are at risk and shareholder, director and officer assets are not jeopardized.
Unincorporated businesses expose the assets of the business owner directly in the event of a lawsuit or judgment. Essentially the rules for incorporating in the District of Columbia can put a layer of protection between your personal life and your business. For more information on incorporating, check out https://incparadise.net