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Today’s Lie: I Have to Incorporate Before Trying to Get Clients

The Bull 3This is right up there with the “I have to get my website perfect before I publish it”!  As small business owners, especially service based, we sure do create a lot of excuses to keep us from getting clients!  I hear this one all the time – it’s the belief that you can’t get clients before you become an LLC, an S-Corp, or something “official” because, apparently, nobody will take you seriously without it.  (Oh, forget about all your training, letters after your name, experience, because, of course, that doesn’t count if you aren’t a business entity….)


The BustUm, HELLO! Have you had a client yet?  I bet you’ve had at least one if you’re out there trying to start or develop your business.  Did they actually ask you if you are incorporated – was that at all important to THEM, or is it just important to YOU?  In my book, this is just a


barrier to you getting business.  And, so there you are, in the red, and rather than drumming up business to get back into credit, you want to spend more money to incorporate?  Huh?

Here is my take on the business of incorporating and what you should think about.  Mind you, I’m not an attorney!  I’m just speaking from experience:

  1. Unless you are trying to get hired by a company that requires vendors to be incorporated, it is not a requirement for you to do this.
  2. If your concern is liability, this is a wise consideration.  However, you can probably get liability insurance for a lot less money while you contemplate whether you really need to be a business entity.
  3. If you are just starting a service-based business, you will find that your business will grow and evolve as you do.  If you incorporate there are tax consequences, and if you change your business name or offering in a year or two, you may end up having to spend more money, time and hassle dissolving the entity you created than is worth it.
  4. Think about WHY you want to incorporate – if it really is about perception, or professionalism, maybe there are other accolades you are not considering (like that certification, degree, testimonials, etc) that you need to take into account before spending the money and dealing with the taxes, accountant fees, etc.

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  1. LOVE this affirmation of what my gut already tells me is true.

    • Glad to help!

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