Do Professional Organizers Need To Incorporate?

To build and run a successful organizing business, you have to ensure your business is legally compliant. The first legal requirement you need to meet as a new entrepreneur is choosing the corporate structure of your business. 

The four most common business structures are sole proprietorship, partnership, limited liability company (LLC), and corporation. These legal structures come with their own set of advantages and disadvantages. Make sure to research before selecting what you think is best suited for your business. We recommend that you consult with an accountant or tax attorney to help make the right decision for you.

Many solo entrepreneurs and startups choose an LLC, which as the name suggests, offers limited liability for any financial or legal faults of the business. LLCs also enjoy the benefit of a 'flow-through' tax treatment where the owners are taxed instead of the business. Most states don't restrict ownership on LLCs. This means that a single member, two or more individuals, corporations, other LLCs, and foreign entities can own the LLC. These reasons make it a popular choice among business owners.

Regardless of the business structure you choose, the incorporation is done through your state. Most states make it easy to do this by yourself online however, you may choose to seek assistance from an attorney or accountant.

Want to learn more? At ASPO, we offer the information and resources you need to help you set up and manage a successful organizing business. Find out more about our ASPO Simple Systems courses and membership benefits.