Seek professional advice on the best legal structure for your business.įrom a tax perspective, there are pros and cons to incorporation. Sometimes a multi-tiered corporate structure is needed for maximum asset protection. Only the assets of the corporation are generally available for seizure by creditors (unless you sign personal guarantees). It is the best way to protect your family’s wealth if your business involves potential liabilities where insurance may not cover all possible claims. A corporation is a separate legal entity with its own assets and liabilities. Unless you run your business through a corporation, everything you own is on the line. Running a business involves risks – risk that the business may be a huge success or a big flop. ![]() In some cases you need to incorporate your business to be eligible for certain government incentive programs. It also provides a greater ability to raise capital by attracting investors. A sole proprietorship or partnership may be perceived as a “small business” whereas a corporation can be viewed as more established and prestigious. From a business perspective, there can be industry standards as well as marketing and branding benefits to incorporation.
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