Many clients have always asked us, would it benefit them if they incorporate their business? There are pros and cons to incorporating a business and it needs a careful consideration of your personal and financial situation of your business.
Separate legal entity
A corporation is a legal entity that has its own legal personality that is separate from its owners (shareholders) and the individuals who manage its affairs (directors or officers). It is created by filing the necessary legal documents with relevant government authorities.
Incorporating your business could result with the following benefits:
While the disadvantages to carrying an incorporated business could mean:
It's generally advisable to defer incorporation until the business is profitable, unless there are huge business liabilities which could potentially deplete personal assets. There are numerous tax planning opportunities available in incorporating a business and at Estrada & Tan, we'll be happy to assist you with your plans.