While there are certain legal and tax benefits for creating an LLC or corporation, there are certainly some marketing benefits to them also.
How a Corporation or LLC Can Make You More Money
I recently had a consultation with a sole proprietor, and the conversation steered towards creating a corporation or LLC for their company. They told me that they’ve had several potential clients tell them that they would have hired them, but that because they weren’t an LLC or corporation, they couldn’t be hired.
Some vendors like dealing with an LLC or corporation for several reasons, including:
- Legitimacy: helps tell people you’re serious about your business; and
- Bigger presence: even if you’re a one person shop, having an LLC or corporation makes you look like a larger company.
In most instances, clients aren’t going to not hire you because you’re an LLC or corporation. Moreover, if you seek raise money for your business later, a corporation is more desired than other business entity forms.
Have you been told by a potential client that they would have hired you, but didn’t because you weren’t an LLC or corporation?
