Incorporation Services: What are the Benefits
and Privileges
by Robert Thatcher
Published on this site: April 10th, 2006 - See
more articles from this month
In a very few years that Internet has been exiting, it has
fast become a virtual shopping site where everything from
the most common to the hard to find items can be found. Incorporation
services are one. Most businesses choose to incorporate because
of the benefits that can be derived from it.
Not long ago, only big businesses were incorporated. These
businesses can provide the best compensation packages and
benefits that are near to impossible in smaller establishments
that are not incorporated.
During the middle half of the 1900's, other smaller businesses
started picking up the idea. One of the reasons that incorporated
businesses enjoy is tax exemption and tax holidays that translate
into big savings that can be used as additional capital.
During the 70's the reason to incorporate even small businesses
had been so attractive that small businesses started to incorporate.
Later however, congress started curtailing the benefits that
the big corporations are enjoying that today, even small organizations
can start having additional fringe benefits. This resulted
in smaller entities having parity with big corporations in
terms of tax deductible benefits without being incorporated.
While parity has been achieved, there are still many reasons
for incorporating.
- One is image. A good title like President or the
CEO of a corporation can command respect among clients.
Clients would normally prefer to talk with the top executives
of a company than any other person with a non-corporate
title to back him up.
- Another is the protection of a corporation when buying
services. To soften the exposure of the company, many
are now requiring independent contractors to incorporate
themselves before their services are accepted.
An incorporated business has a wide range of powers. It has
its own legal personality separate from its stockholders,
owners and investors that is mandated and protected by state
laws. It can Enter into contracts and buy and sell properties
and goods subject to lawful transactions.
When legal problems arise, anyone from the company can represent
the corporation in behalf of the company.
An incorporated company is liable for its own debts. The directors,
shareholder and owners are shielded from the company's debt
and can not be sued in behalf of the company. The company
will have to bear the burden of is own debts from its own
resources except in cases when an individual guarantees the
corporate debt or as mandated by the court.
Corporations are granted a separate personality that it can
go on even after the death of the owner and the shareholders.
In short, there is money to be saved privileges to be enjoyed
when an entity is incorporated.
While books have been written whereby an individual can incorporate
himself without a lawyer, the safest and surest way is still
to have one. The expertise of a lawyer encompasses consideration
for commercial law, laws on taxation, securities legislation,
limited liability, local and national ordinances and a wealth
of knowledge regarding business consideration. Furthermore,
laws are being changed, proposed and amended from time to
time that the law that a non-attorney is familiar with may
already have been replaced.
A registered agent will be required for companies that are
in the process of incorporation. They act as the representative
for accepting service processes that include official government
communication that are presented to the company, legal proceedings
and legal notices.
Incorporation services can also provide you a registered agent
when you require one.
Robert Thatcher is a freelance publisher based
in Cupertino, California. He publishes articles and reports
in various ezines and provides incorporation service
resources on http://www.about-incorporation-services.info
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