To raise capital, private corporations can issue shares to friends, family, business associates and accredited investors. Also, because of the added security provided by limited liability, corporations are more likely to secure loans or investments.
Benefit from incorporating your business
Incorporating has never been easier and more affordable.
Incorporating offers you limited liability, meaning that in the event of a lawsuit or bankruptcy, you won’t be held personally responsible for the debts of the corporation, provided you act in good faith and comply with government rules. You may lose your initial investment, but you won’t lose your home, car or other personal assets.
Incorporating offers a broad range of business advantages not typically provided by other legal forms of business
What are the benefits of incorporating?
Incorporation offers numerous advantages to your business. First of all, limited liability protects the shareholders, since debt responsibility is confined to the initial amount invested, with the exception being if a personal guarantee against the corporation’s loans was made. As a result of incorporation, more flexible financing options are available, and corporations are more likely to secure loans from financial institutions.
In addition, tax benefits are offered, as corporations benefit from lower rates of income tax and can bring losses from previous years to offset the profits from the present year. Following, with the benefit of continuous existence, a corporation will continue to exist until it is formally liquidated. Importantly, incorporation offers your business the ability to enter into contractual agreements due to the fact that corporations are a separate legal entity.