Incorporating your business may be advantageous for a number of reasons. However, selecting the best business entity for your business venture is always a personal decision to be made after weighing the pros and cons of all possible business entities.
One significant reason businesses become corporations is to separate personal liability from corporate liability. In other words, the corporation protects you, the individual, from liability for any corporate activities. In other words, the activities of the corporation remain with the corporation and are not generally transferred to an individual. The corporation can be sued which should have no impact on a shareholder individually.
Another important reason some businesses incorporate is the ability to structure taxes differently which can benefit you with lower overall taxes. The corporation can be taxed as a C corporation or an S corporation.
A corporation is a tidy way to bring investors and others into your business entity and share a portion of the business with them. Each member of the corporation can be given shares of the corporation. This allows you to bring in investors and give them a share of the business.
Family Security Law Group, APC’s business law lawyers in Thousand Oaks, CA haven been helping business owners in Thousand Oaks, Westlake Village, Moorpark, and Camarillo with their business formation needs for over 35 years. Contact us today for a complimentary 30 minute consultation.
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