09 Feb What Are the Benefits of Incorporating A Business?
Starting a business means you have to decide on a business structure. This shouldn’t be difficult as there are enough and more business structures for you to choose from. Although great, this fact might make the decision daunting. So, we’ll be making it easier for you by running through the benefits of forming a corporation.
Easily Get Loans
If you want to get a loan for your business, you can easily do so if you run a corporation. Your business is a fully legal entity so banks would have no issue giving you funds. This is as you’re independent from your establishment.
Unfortunately, if you’re a sole proprietor, getting a loan is very, very hard. The chances of you getting are very low if your business just started.
If you want to incorporate your business, know that you can easily get capital. Not only could you get it from a lender, you could raise it yourself. Whenever you want, you could sell stocks. Depending on how good your business is doing, this could be a lot of money. That being said, you might not want to do this as it’s a pretty big move.
Your Business Never Dies
Your corporation will never die. If anything were to happen to you, know that it will go on forever. It has a range of directors that would choose someone to fill in your spot.
Because of this, you can expect the corporation to run for generations. As you can imagine, this is a huge benefit and any up and coming business owner would want this.
Although you have a range of taxes to pay if you’re a corporation, you’ll see yourself getting enough and more tax advantages. This is what you want as a business owner, so you can put the money back into your future.
That being said, you’ll still have to register for things like ABN and get GST, which you can easily do. In fact, if you’re looking for a GST calculator Australia has enough and more of them.
You’re Not Attached to Your Business
If anything were to happen to your business, you wouldn’t be responsible. This may sound strange, but it’s true. When you form a general partnership or proprietorship, you’re personally responsible for any debt your company falls into. If anything were to happen, the lender would seize your assets. This includes things like your home and vehicles.
Corporations have the least legal liability compared to other businesses structures, which is something you’d like to hear.
If you’re thinking about incorporating your business, you should take the leap as one of its benefits is the fact that you’re going to gain a lot of prestige. People respect corporations much more than other business structures, especially sole proprietorship. In the long run, this would help you considerably as you can gain more customers.
What’s more, you can gain more investors too. After all, you seem like you know what you’re doing.
All in all, a range of benefits are at your disposal if you want to incorporate your business, so what do you think?