Other than popping ‘the question’ to that special man or woman in your life, deciding whether or not to incorporate your business may be one of the most important decisions you ever face. Although I suggest that you get professional advice based on your personal circumstances, here are some of the things to consider before taking the plunge. Rather than trying to ram this down your throat in a single article, I’ll nibble away on this topic a little at a time over the coming weeks. Today’s morsel shall be on companies and liability protection.
Incorporating and Limited Liability
A company is treated as a separate person for most legal purposes. As a result, if the company runs into legal problems and has been clearly representing itself as a company so that everyone is forewarned, the business owners may be able to protect their personal assets from being exposed to the company’s creditors. Accordingly, even though your business might become a thing of the past, you may still be able to hang on to your home and other personal assets.