|
Home / Business / Management
Why Incorporate Your Business?
By:Scott Miller
Entrepreneurs embark on costly business ventures without first looking into the form of business that would be most suitable for them given their business experience and financial capability. Deciding on what legal form your venture is going to take will spell the difference when you experience difficulty in your business later on.
A businessman can choose from different business forms including sole or single proprietorship, partnership or a corporation. Each of these legal forms has their own advantages and disadvantages and a businessman should be well aware of their implications on his business venture.
Sole proprietorship is the easiest business venture to put up because you only have yourself to disagree with. This means you can go ahead with whatever plans you have and you can implement them anytime. It means that when your venture succeeds then you will reap all the financial rewards of your business. The sad fact is that this can also be a disadvantage since it can also mean that you will shoulder all the losses if the business fails.
A partnership will do well for business ventures that require more capital and more skills and expertise. You and your partner can concentrate on the different aspects of the business depending on your skills and talents. A partnership form of business means both you and your partner get to share your financial earnings and losses. However, there could be a problem if the business acquires debts because your creditors can run even after your personal money and not just after the capital infused into the business.
The most ideal, although complicated, type of doing business is the corporation. Incorporating your business would mean bringing in other people to the business. This would mean no decision can be reached without the agreement of the majority of the Board of Directors. The good thing about a corporation is the availability of vast financial resources for the business.
A corporation is a distinct legal entity from its incorporators and shareholders so that in case the business incurs debts, the share or stockholders will only answer for the debts depending on the shares they have in the corporation. This is called the theory of limited liability. The creditors will no longer have any right to seek payment from the personal finances of the stockholders.
A business can start as a sole proprietorship but the owner can chose to incorporate the business later as it grows. True, there are more documentation requirements for incorporating a business but the advantages of incorporating a business far outweigh the disadvantages.
Digg
del.icio.us
Blink
Stumble
Spurl
Reddit
Netscape
Furl
Article keywords: incorporate, buy business
Article Source: http://www.articles2k.com
The author is a regular contributor to Inc. Today where additional information about incorporating your business is available.
|
|
| Top Management Articles |
- 1). Nine Reasons Why Mentoring Matters to You By : Kevin
There are many roles we play or hats we wear in our lives. We are professionals, family members, brothers, sisters, co-workers, leaders, coaches, friends, parents, and neighbors to name just a few. While you may not wear all of the hats I listed, you can likely add several more that I left out! Many of these roles are a given – we don’t have much choice of having the role – they come with being a responsible adult.
|
- 2). Project Management - Design and Development Projects By : Michael Russell
There’s no getting away from it, design and development projects are a nightmare to manage successfully, particularly the development of software. Nonetheless, in these days of customers requiring ever increasing functionality and ever more sophisticated technology, they are sometimes necessary.
Your company almost certainly has procedures in place such as Make or Buy (do you design/build the item yourselves or do you sub-contract) and Design to Cost (you’ve estimated how much it will cost, now make sure that it doesn’t run over budget.
|
- 3). Defining Supply Chain Management By : James Hunt
Companies that deal with inventory will have to have some sort of system in place to effectively manage the supply chain that exists for any type of sales. A system of inventory needs to be as smooth running as possible so that a company is able to fulfill all its orders in a timely manner...
|
- 4). Customer Advisory Boards By : Paul Lemberg
Customer Advisory Boards are a great source of information about your market and your business. Their advice is more valuable than any management consultant's. They provide real world counsel on what you are doing right, what you are doing wrong, and most important -how to stay competitive. After all, they're the customer. They're the one's who buy your stuff.
|
- 5). 6 Ways to Maximize Learning By : Steve Kaye
Here's how to gain the most from training events.
1) Know what you want
Before the workshop, set learning goals for yourself. What do you want to learn? How can this program help you? What would make you feel that your time was well spent?
2) Ask for what you want
As the program unfolds, ask questions that guide the presentation toward the information that you need.
|
- 6). Save Face, Time, and Money on Your Next IT Project By : Leslie Whinery
How many times have you been involved in a project where a newly-released piece of software required an immediate enhancement because the right people were not “in the loop”? This is an example of how poor communication costs money and damages the reputation of an Information Technology (IT) Team.
Well-managed communication can increase the rates of success on your IT projects by improving relations between you and your customers and decreasing the odds of hasty last-minute enhancements, thus saving face, saving time, and saving money.
|
- 7). Decision Making "Pub" By : Claude Jollet
This article will help transform your decision making process into “PUB” - Pure Unadulterated Bliss!
Think I'm exaggerating? Well ... maybe just a little!:-) But, see for yourself anyway! You might be in for a pleasant surprise. The way I make decisions in complex situations has – at least – the merit of turning decision making into an effective, satisfying, even reassuring experience.
|
- 8). The CEO is 10,000 feet above the fire By : Larry Galler
How many times have you heard a business owner or manager say that they spend their workday “always sweating at putting out fires?” I hear it all the time.
Think of a raging forest fire. There are sweaty fire fighters working hard, just yards in front of the flames. There is one person in a helicopter 10,000 feet above the flames. Those on the ground and the one in the helicopter are all looking at the same fire but they have totally different views.
|
- 9). CPAs vs. Non-Certified Accountants - Clearing Up The Confusion By : John Day
I wish I had a nickel for every time someone asked me what the difference is between CPAs and non-certified accountants. Essentially, non-certified accountants can simply hang up their shingle and open their doors for business. There are no educational requirements. If they want to prepare taxes, most states require a certain number of qualified hours of study plus continuing education hours each year.
|
- 10). Many Kinds Of Banks - Many Kinds Of Accounts By : Sintilia Miecevole
Sometimes looking into opening an account or accounts in banks can be confusing. There are so many types of banks and bank accounts! Which banks are right for you to open anaccount in? Which types of accounts do you need to open? Below are some simple explanations of several types of banks and the accounts you can open. One will surely be right for you!
There are many kinds of banks:
1.
|
| New Management Articles |
|
|
|
|
|
|
|
|
|
|
|
|
- 7). Double Your Profits with Business Coaching By : Kris Koonar
Business as we all know, involves risk. Since starting up your own business means starting a new chapter of your life, you may fail to recognize a few shortcomings in your business plans, as you are too engrossed and feel that things are going great.
|
- 8). Modern Business Strategies and Tactics By : Kris Koonar
Modern business strategies and tactics often concentrate on developing international brands and products, but before developing any product it is important to assess the potential worldwide demand.
|
- 9). Avoiding Poor Time Management By : ian Williamson
Around midnight students across the country become record setting authors by finishing essays, and study groups for tests in unheard of time. This unnerving process often leads to below average results. Many people wonder why this is happening, the answer is poor time management.
|
|
|
|
|
