• Companies offer the best protection against corporate liability for business / business owners, or shareholders. This means that there are provisions in the law in such a way that your personal assets are not in danger to satisfy the obligations of the companies, specifically by the creditors. Legally, companies are separated from their owners. Companies will pay their own taxes, can own their own assets, enter into contracts, sue and be sued, regardless of who owns them and are responsible for their own debts and actions. While your company functions entirely as a separate entity, the shareholders are not personally liable for the business’s obligations. Unless they are found guilty of mismanagement or fraud.
• If your business efforts and initiatives include seeking funding from external sources, a company offers the greatest property flexibility. There are several types of shares that can be issued and sold to finance the business. This aspect of the business structure makes companies attractive to companies with large growth plans by increasing capital. Using the structure of the corporation you can create different types of owners, those who have control, those who are entitled to the distribution of profits or both. The business structure is an attraction for foreign investors and the sale of shares is easy.
• A company has a perpetual existence, which means that, unlike other forms of business that will cease to exist in the event of bankruptcy, or the retirement, or the death of the owners, its continuity is maintained.
• When a company is registered and opened to investors, credibility is instantly gained. When you operate your business as a corporation this shows that the business is viable, which is more attractive to creditors and investors. Your customers also recognize that the word “Inc” in the name of their corporate identity as a factor that demonstrates credibility.