In today’s environment, there are three ways to operate a business:
- as sole proprietor,
- in partnership, or
- as a corporation.
By far, operating a business as a corporation is the most common. The most distinguishing features of a corporation are its legal definition as a person and its limited liability for its shareholders, directors and officers.
Why Incorporate?
Some of the advantages of incorporating a business include:
- Limiting the liability of shareholders for the debts, obligations and liabilities of the corporation to the amount of their initial investment to purchase shares in the corporation. In contrast, a sole proprietor or a partner could potentially lose personal assets beyond those invested in the business.
- It is possible to separate the owners, directors and employees of the business within a corporation, whereas a sole proprietor is the owner and manager of the business, and cannot be his or her own employee.
- A corporation allows the business to attract and motivate employees and management by allowing for partial ownership of the corporation.
- Rates of taxation within the corporation are generally lower than personal rates.
- It is possible for a corporation to merge or amalgamate with another corporation.
- Corporations also have perpetual existence which means that shareholders, officers and directors can come and go without affecting the distinct legal personality of the corporation.
At Nguyen Law Office, we provide more than just the incorporation of businesses. We offer a wide array of corporate services including:
- Corporate reorganizations
- Mergers & acquisitions
- Shareholders agreements
- Debt & equity financing
- Commercial real estate
- Commercial leasing
Through our experience and long-standing relationship with the business community, we are able to provide practical, professional and personalized solutions in a timely and cost-efficient manner.