The Pros & Cons of Making Your Business a Separate Legal Entity
There are a number of significant benefits for a small business owner to consider when determining if incorporation is the right path for their business.
We’ll discuss these main advantages below as well as touch on the downsides that incorporation brings.
To start with, lets cover what business incorporation is exactly. When you incorporate a business, you are, as far as the law is concerned, providing a formal legal separation of your own personal assets and those that belong to the business. In effect,your company becomes a separate legal entity in its own right.
What does this mean to you as a small business owner? In very basic terms it means that should your business hit hard times and go bust, you as the owner are not liable for the debts owed by the business, because they are owed by the business and not you. So once incorporated you can …