Law & Start/Close a Business



INCORPORATION

What Is Incorporation?
Incorporation is a process by which a corporation is formed. Every corporation has to be incorporated (or registered). It is the process by which a business registers and gets a state charter allowing it to become a legally registered corporation.


Why Incorporate A Corporation?
Operating through a limited liability corporation has a number of advantages over other options, such as sole trader, partnership, or trust.

The following are the main advantages summarised for you:

  1. Limited Liability:
    The main advantage of a corporation is that it separates the business risk from the risk to the personal assets of the shareholders. It limits the amount of money that a business owner is liable for, should things go wrong. The corporation allows shareholders to limit the maximum liability for the debts of the corporation to the amount of c...

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