Incorporating your Equestrian business

Author: Greg Monterrosa

If you're operating your Equestrian business as a sole proprietor or general partnership you need to know you are operating in the most dangerous forms of business. Operating this way opens you up to liability, meaning, you are entirely and personally responsible for the actions of your company.

It only becomes scarier if you have partners, then not only are you responsible for your actions but theirs as well. If your partner gets sued personally his or her share of the assets can be taken away. Welcome your new business partners!

"I recently incorporated my business". Says Malibu Horses, Inc. instructor Inge Halliday. "Working with horses and clients really opens me up to liabilities above my insurance coverage. It also helps attracts clients, by operating as a corporation they see I am serious about my business, and its success. A successful business in turn means allot of educated and well trained clients and happy horses".

So what can you do to protect yourself? Operating as a corporation or a Limited Liability Company (LLC) is a safe way to protect your assets. With these types of entities you have what's referred to a corporate veil, this prevents the members/Shareholders from being personally liable from debts or other obligations the corporation or LLC enter into. For this to take place you need to follow your formalities.

When selecting the state for incorporate or form your Limited Liability Company(LLC) most equine professionals incorporate in the state they conduct business out of. If you ever plan on conducting business in a different state check with the Secretary of States office to see if you need to foreign qualify to do business there.

Operating as a separate entity can also give you added tax benefits, such as depreciation of your horses or other business assets, as well as pass through taxation (with LLCs). And the ability to easily add partners or investors.

So when is the right time to incorporate or form your LLC? Now! Everyday you operate as a sole proprietor you are risking your family's house, savings, trucks, animals and any other assets you may own or plan to own.

There are several ways you can incorporate your business. You can speak with a lawyer that can help you get everything filed, you can do it yourself or you can choose to use a service company like MyLLC.com aside from working with start ups and entrepreneurs they also wrote the book Limited Liability Companies for Dummies ®.

Article Source: http://www.articlesbase.com/equestrian-articles/incorporating-your-equestrian-business-3064201.html

About the Author

Greg Monterrosa has worked with thousands of start ups and entrepreneurs. You can follow him on twitter @GregMetro or catch up on his blog at www.StartupWorld.Blogspot.com