Incorporating Your Business? What You Should Consider …
April 3rd, 2008If you’re considering business incorporation for your company, but you’re undecided as to whether or not it’s the correct path to go down, you need to think about the following points:
You’re legally separating it from yourself and officially giving it a separate legal identity, and as such the risks to your personal assets of business failure are removed. This is the main reason for incorporating a business.
Raising finance becomes easier as you can issue shares, selling the business is simplified and you can potentially pay less personal tax as business profits are taxed at lower rates …
The downsides though are that you face double taxation as the companys profits are taxed, and then your dividend income is also taxed, as is your salary from the company. There are lots of statutory legal requirements to be complied with also leading to more cost and less flexibility.
To learn more about the pros and cons of incorporation, read the following article on Business Incorporation, or visit www.incorporate-my-business.com
