Why Should You Incorporate? Incorporating is one of the best ways to protect your personal assets while doing business. Most people choose to incorporate solely for this reason, but its not the only advantage of incorporation. Advantages of Incorporating - Limited Liability: A corporation is a legal entity that exists separately from its owners or shareholders. With some exceptions, shareholders are not liable for the debts and obligations of the corporation or from any litigation where the corporation is the defendant. - Tax Savings: Careful planning of your business expenses can result in lower overall tax rates. There are many tax benefits for doing business under incorporation, depending on your business income. - Anonymity: Depending on the state where you choose to incorporate in, a corporation can be established in such a way that shareholders/owners remain anonymous. Often same level of anonymity can be provided for officers and directors. - Added Credibility: A corporate structure communicates permanence and credibility, even if its a company with only one stockholder and employee. -Easier Access to Capital Funding: With a corporation it is much easier to attract investors through the sale of stock. - Easier Transfer of Ownership: Ownership of a corporation may be transferred without substantial disruption of operations through the sale of stock. This way the need for complex legal documentation is reduced. - Flexibility of Share Ownership: Owning shares gives you the flexibility needed, among other things, to effectively capitalize your business, or to retain key employees. Ready to Incorporate Your Business? eastafricabusinessconsultants/ #ProvidingSolutionsYouNeed
Posted on: Thu, 05 Jun 2014 09:30:06 +0000