In our fourth of five articles highlighting a total of ten good reasons to set up a business entity, we talk about 
appearing bigger than you are and having health care options not available to sole proprietorships.
1.You Can Appear Bigger Than You Are. If you are a sole proprietor or a small general partnership, many companies will not do business with you because they don’t wish to rely on one person for their goods or services. The main reason cited is that if something happens to that person, their supply pipeline is shut down until someone either steps in for the person or the company purchasing the goods or services finds another supplier. Many governmental agencies will only do business with a business entity, such as an LLC, corporation or limited liability partnership. By setting up an LLC, corporation or limited liability partnership, even if there are only one or two people in the company, you appear to the outside world to be much bigger. Although it is a matter of public record, few people look into how many corporate/LLC officers there are when choosing to do business with a company.
2.Health Care Options. Sole proprietors and even general partnerships often cannot get health care for a spouse or guaranteed group coverage from an insurance company. If you are an LLC, corporation or limited liability partnership, you can make your spouse an employee or officer of the company, and usually qualify for group health benefits in many cases. Corporations generally have the most choices of health care options of the various types of entities.
This is the fourth in a series of five articles on 10 good reasons to incorporate.
Thinking of setting up a business entity? Call Nancy at 415-399-0993 to determine which business type is right for you. There is no charge for the consultation. Mention this article and get a free copy of Nancy’s “10 Commandments for Small Business Success”.