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Registered Business Vs. Incorporated

A registered business and an incorporated business is quite different. When you register your business or incorporate, you can complete the appropriate forms and pay the appropriate fees at your Secretary of State or County Clerk's office.

    Asset Protection

  1. A business owner who has a registered business is personally liable for anything that happens in the business.

    If your business is incorporated, it is recognized as a separate legal entity. Creditors of an incorporated business can only seek business assets as a means of recovering debt.
  2. Structure And Size

  3. Most registered businesses will consist of one owner or a few partners. Decision-making power is in the hands of one, or a handful of owners.

    Incorporated businesses may have hundreds or thousands of shareholders. An incorporated business may have many employees and managers.
  4. Paperwork Considerations

  5. Some states require businesses to file a fictitious business name or "doing business as," if you're registering your business in another name other than your own.

    Incorporating your business is a much more detailed process. For example, you'll be required to complete Articles of Incorporation and corporate bylaws.
  6. Tax Considerations

  7. Registered businesses can claim profits and losses from the business directly on their personal tax return.

    Incorporated businesses are subject to double taxation, which occurs at the personal and corporate level.
  8. Time Frame

  9. A registered business effectively ends when its owner dies. An incorporated business, on the other hand, enjoys unlimited life.

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