As a business person who works with partners and investors, you already know that there are risks that involve you and even make you liable to certain legal sanctions. If you want to limit your personal liability and secure assets, you have the option to incorporate your company.
Incorporating your company has many benefits. For one, its business structure is separated from the business’ founders. There is also a chance that you will have tax breaks. But you need to remember that this route is a bit taxing, and it requires you to come up with a detailed and comprehensive plan.
If you want to incorporate your business, here are some things that you need to bear in mind:
Enumerate the key benefits of the action
Before taking any action, you need to weigh the pros and cons. Ask yourself and your partners how the business will get any long-term benefits from the plan. For starters, incorporating the business might mean getting perks, such as huge savings and lots of tax breaks. It also helps build your brand’s credibility. And because your corporation is a separate entity, it might have perpetual existence. It can continue to exist even if the original founders are already not involved.
Work with a business lawyer
Incorporation is a very specific business action that needs a specific lawyer. Just like how a motorcycle accident lawyer specializes in two-wheel accidents, a corporate lawyer is well versed in business laws. A corporate lawyer not only helps you prepare your documentation, but it can also help you come up with foolproof agreements. Moreover, a business lawyer will help you deal with loopholes in the agreement and come up with certain legal remedies. Ideally, the lawyer should not have an interest or share in your company.
Come up with names
You can think of incorporation as your business’s rebirth. And when it comes to this, you need to choose a unique name. Make sure that you pick one that is not just unique; it should also be easy to remember. You and your partners can come up with many name studies; be careful with your choices, as it can have some legal implications. If you are really serious about it, you can hire a branding or advertising agency to think about them for you.
Decide on the internal structure
A team of decision-makers is needed for the corporation, so you will need to have a board of directors. Other than the higher-ups, the internal structure of the business must be carefully considered. You can choose to make the lines distinct between shareholders, decision-makers, directors, and officers. You must also have internal rules and regulations that serve as the company’s constitution.
In the end, incorporating your business might seem complicated. But with the right strategy, things will flow smoothly. This route also allows you to gain access to numerous corporate benefits. Also, you must entrust the process with the right people to avoid problems in the long run.