Quick Facts About Incorporating A Business
April 30th, 2007
- Simply put, to incorporate is to separate a business owner from his or her business. A corporation sets itself apart as a separate entity from its owner or owners(s).
- Questions you have to ask :
* What name will you incoporate under? Is the name available or taken?* Are you going to incorporate in your state, or another state such as Delaware or Nevada?
* Will it be a corporation, or a limited liability company (LLC)?
- Incorporation offers the business owner limited personal liability which sole proprietorship or general partnership is unable to offer. When a corporation enters into a business transaction, it will be the corporation and not the individual owner who is responsible. In an event of a court ruling against a coporation or a LLC, the personal accounts and assets of the owner(s) will not be affected. Only the money invested into the corporation will be at risk. In fact, incorporating can protect you from any bad judgments or disputes with your co-owners regarding company issues.
- The Corporation’s lifespan is not dependent on the lifespan of its owners.
- Ownership of a corporation is transferable.
- Fringe benefits (e.g. health and life insurance and retirement plan) offered by a corporation to its employees are treated as tax-deductible expenses.
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