Incorporation gives a separate distinct identity to your business, completely different from the shareholders or owners. The assets and liabilities of your business and owners or shareholders are distinct. The company has a separate legal existence albeit it does not have a separate body or mind of its own.
The personal property of the shareholders is safe even in cases of settlement of dues of creditors or any other form of lawsuits. You are liable only to the extent of your investment in the business. Similarly, the company property is safe if you are into any personal lawsuits.
Business incorporation allows you to transfer your ownership easily, sometimes without any paperwork too. The credit ratings of the company are separate from that of the different shareholders of the company. Your personal poor credit rating does not affect your business in any way.
Applicable tax rate for your company is much lower than personal tax rates. Your company can carry forward any amount of losses into the next financial year.
The existence of your incorporated business does not suffer due to the death or incapacity of any partner, owner, or shareholder. Your business continues its existence as usual. This offers greater … Read the rest