Small Business And Business Incorporation
Are you a small business owner and thinking of company incorporation? Do you really know much about incorporation and how it works? Is incorporation a financially viable decision for your business? You have probably noticed how the words Inc or Corp in a business name helps to give off a more positive perception of a business' long term financial permanence, compared to one that does not.
Are you a small business owner contemplating other business opportunities and other business trading structures? Maybe you are not even in business yet and are just making a few initial enquiries as to the different types of trading structures before starting small business? If you are a small business owner, does your business need a bit of a boost - especially in these unsure financial times?
Finding a business structure that you can make work is no easy task - especially because there are so many different business opportunities to choose from! The last thing you want to happen is to fall behind your competitors because of poor business management or the wrong choice of business structure!
In the United States of America, you should be aware that the laws about sole traders, partnerships and companies are all so different and sometimes complex.
There are a lot of things that you need to take into consideration before deciding whether business incorporation is best for you! Have you spoken to your lawyer about your options? They will be able to explain the whole process of incorporation and the other types of business structures that might be suitable for your business.
Business Incorporation - Getting the Facts Straight!
Business incorporation essentially is the formation of a new legal entity that is more commonly called a company or a corporation. A company (or corporation) is different from any other type of business structure, mainly because the entity has its own rights and liabilities (or legal responsibilities) separate from its members. So what exactly is a company and how does it differ from any other trading structure?
Company Facts - Getting Back to Basics
So you now know that a company is a completely separate legal entity from its members and the public. This essentially means that when making a new company, you are really creating a brand new legal 'person' that is capable of doing things that a normal individual can do legally.
A company can own property in its name, a company can be sued and sue others in a court of law and a company can even enter into and sign contracts! A company is an entity that has members (frequently called shareholders) who own it and people (acknowledged as directors) who manage the corporation on a day to day basis.
If you plan on starting up a company with one director, you should be aware that a shareholder (or member) can be the sole director of a corporation. You have probably noticed that a company pretty much like a person. So you are probably wondering what all the fuss is about and wonder why a lot of people go to the trouble of spending a lot of money to create a company.
If a company will have most of the same rights as an individual, why bother? There are heaps of benefits of incorporating your business. Find out what all the fuss is about and find out why a lot of people are turning to business incorporation!
So what are the Benefits of Business Incorporation? Is it REALLY worth it?
There are a lot of valid reasons why small businesses are slowly deciding to incorporate. The main reason that a business will be incorporated is usually for the financial protection that a corporation offers the directors.
Essentially, the director or directors of a company are free from most of the liabilities from the business itself. It sounds good, doesn't it? - Especially when you compare a company to a partnership.
Bet you did not know that each of the partners in a partnership is subject to indefinite personal liability when it comes to any amounts outstanding to or from the partnership? You may think that that's not really fair, it probably isn't, but that is the law.
Another popular reason for the increase in small businesses choosing business incorporation as their trading structure is simply because a company is a separate legal entity. Therefore, a company will carry on in spite of the passing away or incapacity of any of its shareholders or directors. This helps to give a sense of eternal and prolonged existence.
This seems to appeal to a lot of small business owners, knowing that someone will take over when the time comes. So before starting small business, be sure to go through all of the business opportunities available to you. The best person to help with this big decision is your lawyer!
Are you a small business owner contemplating other business opportunities and other business trading structures? Maybe you are not even in business yet and are just making a few initial enquiries as to the different types of trading structures before starting small business? If you are a small business owner, does your business need a bit of a boost - especially in these unsure financial times?
Finding a business structure that you can make work is no easy task - especially because there are so many different business opportunities to choose from! The last thing you want to happen is to fall behind your competitors because of poor business management or the wrong choice of business structure!
In the United States of America, you should be aware that the laws about sole traders, partnerships and companies are all so different and sometimes complex.
There are a lot of things that you need to take into consideration before deciding whether business incorporation is best for you! Have you spoken to your lawyer about your options? They will be able to explain the whole process of incorporation and the other types of business structures that might be suitable for your business.
Business Incorporation - Getting the Facts Straight!
Business incorporation essentially is the formation of a new legal entity that is more commonly called a company or a corporation. A company (or corporation) is different from any other type of business structure, mainly because the entity has its own rights and liabilities (or legal responsibilities) separate from its members. So what exactly is a company and how does it differ from any other trading structure?
Company Facts - Getting Back to Basics
So you now know that a company is a completely separate legal entity from its members and the public. This essentially means that when making a new company, you are really creating a brand new legal 'person' that is capable of doing things that a normal individual can do legally.
A company can own property in its name, a company can be sued and sue others in a court of law and a company can even enter into and sign contracts! A company is an entity that has members (frequently called shareholders) who own it and people (acknowledged as directors) who manage the corporation on a day to day basis.
If you plan on starting up a company with one director, you should be aware that a shareholder (or member) can be the sole director of a corporation. You have probably noticed that a company pretty much like a person. So you are probably wondering what all the fuss is about and wonder why a lot of people go to the trouble of spending a lot of money to create a company.
If a company will have most of the same rights as an individual, why bother? There are heaps of benefits of incorporating your business. Find out what all the fuss is about and find out why a lot of people are turning to business incorporation!
So what are the Benefits of Business Incorporation? Is it REALLY worth it?
There are a lot of valid reasons why small businesses are slowly deciding to incorporate. The main reason that a business will be incorporated is usually for the financial protection that a corporation offers the directors.
Essentially, the director or directors of a company are free from most of the liabilities from the business itself. It sounds good, doesn't it? - Especially when you compare a company to a partnership.
Bet you did not know that each of the partners in a partnership is subject to indefinite personal liability when it comes to any amounts outstanding to or from the partnership? You may think that that's not really fair, it probably isn't, but that is the law.
Another popular reason for the increase in small businesses choosing business incorporation as their trading structure is simply because a company is a separate legal entity. Therefore, a company will carry on in spite of the passing away or incapacity of any of its shareholders or directors. This helps to give a sense of eternal and prolonged existence.
This seems to appeal to a lot of small business owners, knowing that someone will take over when the time comes. So before starting small business, be sure to go through all of the business opportunities available to you. The best person to help with this big decision is your lawyer!