Incorporation provides many benefits. Incorporation can help limit your personal liability as a business owner. In general, creditors of your corporation must satisfy their claims by seizing the assets of the corporation rather than your personal assets. In contrast, as a sole proprietor or partner in a partnership you are financially responsible for all liabilities of the business, and your personal assets are subject to seizure or lien by creditors. Other benefits of incorporation can include greater tax deductions for health insurance and medical expenses, lower payments for social security tax and medicare tax, and greater opportunity to raise capital for the business through the issuance of stock.
Incorporation is a simple process.
Generally, you should incorporate in the state where your office is physically located. If you incorporate in another state such as Delaware, you may need to submit an application to qualify as a foreign corporation in the state of Maryland if your office is physically located in Maryland. State law requires that a person located in the state of incorporation be available during regular business hours to receive legal notices and other official documents. That person is called the registered agent. In Maryland, one person is enough to form a corporation.