Why Should you Incorporate?

Why should you Incorporate?

Two important reasons to incorporate are to limit liability and tax purposes. Limiting liability is important for the individual because if a corporation gets sued, for example, the individual director, officer or shareholder is not liable for the losses. Another example is, if the corporation goes bankrupt, the individuals are not liable to pay the business’ creditors. I will not go into tax benefits as I am not a tax lawyer. Another benefit of incorporation is the “optics”. Corporations like dealing with other corporations, rather than sole proprietors and partnerships because they are perceived to be more stable, so there is an intangible business advantage to incorporation.

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