13 Oct The Advantages Of Incorporation
There are 2 major benefits that arise when you incorporate a company rather than simply registering a business name.
When you legally incorporate, you are creating a new legal entity – in essence a new person in the eyes of the law, which comes with 2 very important benefits:
- Limited liability – if someone sues your corporation, they can only look to the corporate assets to satisfy any judgment (unless there is fraud or other illegalities that exist, but this is usually rare). This means your personal assets are safe from creditors and court judgments.
- Tax Advantages – corporations usually pay much lower taxes on income than the average person which can lead to tax deferral and other strategies you should discuss with your accountant or tax advisor.
This is a very basic overview of what it means to incorporate. There are many other advantages, however every situation is unique so please consult your lawyer who can help guide you through the birth of your new corporation. For a free consultation, contact us .