Although you are probably somewhat familiar with the idea of starting a business or maintaining a business, corporations and the act of incorporating a new business can sometimes be intimidating. First and foremost, it is important to understand that the purpose of becoming incorporated is to reduce the amount of liability that you are responsible for as a business owner. With this liability at stake, you can be made to pay for all manner of mistakes that are simply outside of your control and understanding. With the incorporation in place, it is a simple matter of litigation to discharge any type of action against you. With this reduction in liability, the advantages of incorporation are quite obvious to anyone with a cognizance of day to day business structure. The different types of corporations available in the state of Washington include limited liability corporations, sole proprietorships and all manner of other different types of corporations that offer different levels of liability and protection. While some businesses are not required to incorporate, there are others who, whether required by law or not, are almost impossible to operate without incorporation.
By incorporating, you insulate yourself from the day-to-day legal liability of the business. In the case of those who are unfamiliar with the liability that businesses can bring, individuals can sue a business for far more money than they can sue a particular proprietor for. In the case of a corporation, there is all manner of money at stake, as well as the very livelihood of the business itself. With a strong enough lawsuit, your business can be out of business almost overnight. But if you're incorporated, it will stop there and not include you, as an officer or agent of the company. This is the strength of incorporation, the fact that it reduces your liability and insulates you from these types of objectionable legal actions. Even if you are the subject of a legal ruling, you can continue to do business under your name or under a new name well into the future due to the strength of the corporation.
Depending on what type of business you run, you will want to choose from a multitude of different incorporation options. You can become a sole proprietorship, a limited liability company, a full-fledged corporation and there are even considerations for joint ventures and other types of companies available under business law in Washington. Deciding for yourself which is the most advantageous requires further study and research on your part and careful consideration of your needs.