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Is Corporation Right For My Business?
Separate legal entity provides many benefits, but comes at certain costs. Not everyone needs a corporation, and not everyone is ready to manage it.
In addition to the higher registration costs, Corporation imposes many administrative responsibilities on its incorporators. In addition, by creating a separate legal entity, and a new tax-payer, Incorporation results in additional tax returns and higher costs of preparation than Sole Proprietorship.
Despite certain drawbacks, operating under an incorporated entity provides business owners with significant benefits. It also opens more opportunities and possibilities for the future business growth and development. In addition, it shields the business owners from many legal and administrative liabilities.
In this video, we overview the benefits and the costs of a corporation and will discuss to which types of businesses, or business ideas it provides the best solution. We will provide a list of considerations for entrepreneurs that should support their decision to incorporate their business and operate as a separate legal entity.