Is Incorporation Right For You?
There are both advantages and disadvantages to starting up your own corporation.
Personal Protection Because your company is a separate legal entity, whether you are the sole shareholder of the corporation or not, the obligations of your business belong to the company and not to you personally. Therefore, a creditor of the business cannot come after you personally to reconcile any debts of the business. The creditor’s only option is to go after the assets of the corporation.
Potential Corporate Tax Benefits Corporations can qualify for a multitude of favorable tax treatments. Not all types of favorable tax benefits apply to all corporations, but your accountant can tell you which your company will qualify for.
Transferability of Your Corporation Unlike a sole proprietorship or a partnership, a corporation does not live and die with the owner’s. Therefore, the corporation exits until it is legal dissolved. This allows for the corporation to be easily transferred from generation to generation, from business partners to business partners or anyone you would like to be a part of your business.
Start-up Expense When you incorporate a business, there is a fee required to file documents with the government and to create the corporations minute book.
Annual Documentation Forms, notices and other documents are required to be filed with the government on an annual basis to ensure that your corporation continues to exist under the governing legislation
Dissolution There are many things that need to be done and settled before a company can be dissolved. Documentation must be filed, the company’s debts must be concluded, fees must be paid and the assets of the company distributed according to the articles, rights of the shareholders and any governing legislation. There are both advantages and disadvantages to incorporating your business. You need to weigh out the advantages and disadvantages and make your decision based on your business’ needs now and in the future.
PLEASE Contact Us FOR A FREE CONSULTATION TO SEE IF INCORPORATING YOUR BUSINESS IS RIGHT FOR YOU!!!