Shanu Singh Guliani

10 Advantages to Incorporating
March 1, 2007

There’s no question that hard work and a little luck is what it takes to be successful. But a little knowledge, especially when it comes to choosing the proper business structure (such as sole proprietor, partnership, corporation, Limited Liability Company) can help you stay successful.

Advantages to Incorporating:

1. Owners are protected from personal liability from company debts and obligations.
2. Corporations can have an unlimited life. Therefore, it may continue regardless of what may happen to its individual officers, managers or shareholders.
3. Corporations are the best vehicle for eventual public companies.
4. Capital can be more easily raised with a corporation. This may be accomplished through the sale of securities.
5. Corporations can easily transfer ownership through the transfer of securities.
6. Incorporating allows for numerous tax advantages at your disposal that are virtually impossible to accomplish with other business entities.
7. Corporations are generally much easier to sell and are usually more attractive to buyers than either a sole proprietorship or partnership.
8. Privacy and confidentiality. Incorporating is a great way to keep your identity as well as your business affairs private and confidential.
9. Incorporating increases credibility. In today’s world, most people feel more confident and secure dealing with a corporation as opposed to other business entities.
10. Incorporating might also help to get and keep good employees by offering them stock in the company.

Posted by Shanu Singh Guliani on March 1, 2007 | Comments (0)