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.