The incorporation of a business is a big step for many business owners. The process should be fully understood and considered by any responsible business owner before acting and making the decision to incorporate. However, this decision is not one that must, or even should, be made alone. A business attorney with education and experience in cases similar to yours should be consulted during consideration. Incorporation may be a big step, but if done correctly, it offers great advantages for responsible business owners.
- Incorporation of your company can protect you personally from liabilities, such as those from lawsuits, debts, or other obligations. Those looking to collect on an obligation from an incorporated company can often go no further than the company itself for collection purposes. However, this liability protection does have limits particular to individual scenarios and the type of incorporation your company has undergone.
- Incorporation helps a company to grow more easily and indefinitely. Directly, incorporated companies often have an easier time obtaining capital, which may come through securities or stock exchange. Also, when the owner of an incorporated company passes away, that company maintains its legal standing. Indirectly, an incorporated company conveys a sense of professionalism and confidence that is attractive to employees, clients and investors alike.
- Incorporation may also come with a certain amount of tax relief. Especially on such issues as insurance and self-employment tax breaks, incorporated companies may come out ahead. Talking to a business attorney is the first real step in understanding more about how incorporation may bring benefits of all sorts to your company.