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Benefits of Incorporation


Limited Liability

An advantage to incorporating is the limited liability aspect conferred upon its shareholders. The shareholders are not subject, by and large, for the debts and different commitments of the company. An investor's obligation for the debts of the company is constrained to the amount of assets each investor has put into the organization. Creditors only have rights against the company itself and not against the shareholders.


Perpetual Existence

A partnership has the component of never-ending presence. It isn't reliant upon the life of its shareholders, directors, and officers and won't be influenced by changes in, deaths or retirements of its shareholders since the corporation is viewed as a different "individual". This preferred standpoint takes into consideration the efficient exchange of ownership (i.e., its shares).  Due to its autonomous legal status, it might possess property in its own right, go into contracts and sue (or be sued).

Capital Acquisition

A company may offer more sources of raising capital than different business formations, (for example, sole proprietorships and partnerships). Corporations can issue different classes of shares as well as other debt instruments such as bonds, to raise capital, which is more alluring to investors.

Tax Advantages

Corporations offer great tax advantages such as lower income tax rates and a corporation can carry forward operating losses of previous years to offset operating profits in current years.

Credibility and Prestige

Incorporating gives your business credibility and prestige in its business dealings.