AZ Biz News: Wells Fargo Bets $100 Billion On Small Business & Should You Incorporate? [video]
Wednesday, June 04, 2014
Posted by: Arizona Small Business Association
Wells Fargo Bank has been the top Small Business lender in the U.S. last year, and in the next 5 years, the bank wants to do even more. Wells announced a new five-year lending goal to provide $100 billion in new small business loans by 2018. Over the past three years, Wells has made $46.8 billion in new small business loans nationally.
Wells Fargo's Amy Shapira says Wells understands how important small business is to the US economy.
“We know that 99 percent of U.S. employers are small businesses, and 64 percent of net new private sector jobs are from small business. Currently at Wells Fargo, we serve 1 in 10 small businesses in America, so we feel we know the challenges and questions from working so closely with them.” -Amy Shapira, Wells Fargo Bank
Should You Incorporate?
Starting your own business can be a very rewarding step. Forming a corporation can help your business gain some important tax advantages. A corporation is a separate legal entity able to open a bank account, own assets, do business, and be taxed separately at corporate rates under its own name.
David Beauchamp with Clark Hills Corporate Financial Group says, "Incorporating provides liability protection to business owners, investors and shareholders as well, by shielding their personal assets."
“Whenever you could have potential liability, we always recommend you use a liability limiting entity so the entity is responsible, but not the individual. For example, the C-corp, S-corp or an LLC, and those structures, as opposed to sole proprietorship, give the potential of limiting the liability for the owners of the entity.” - David Beauchamp, Clark Hill