The Advantages of Incorporating
 The Corporation is one of the crowning achievements of mankind. An entity in its own right, the corporation exists separate and apart from the personal fortunes of its founders. It can pass from its owner’s hands intact to third persons or to the owner’s heirs. It pays its own taxes, at its own tax rates, and it can sue or be sued in its own name. It can enter into contracts or partnerships and it can buy and sell real estate in its own name. Conceptually, it is a "living" thing, created by but separate and apart from its owner. Politically, it may be extended certain tax advantages not available to others as a means of achieving a specific societal goal. Indeed, the protections and advantages afforded by corporations have been central to the development of modern and free societies.
Liability Protection
This is a paramount reason to incorporate. Conceptually, a corporation is responsible for its debts, obligations, and legal liabilities. However, this benefit is not absolute. Liability protection, frequently referred to as the "corporate veil," may be "pierced" or set aside in certain circumstances. A corollary of this limitation is that shareholders of a new or small corporation may be asked to give personal guarantees when trying to obtain business financing.
Separate Credit Entity
 One of the most helpful attributes of a corporation is that it can develop credit in its own right, separate and apart from its owners. Such corporate credit, if developed correctly, is not tied to the personal credit or financial liabilities of its owners. Interestingly, the proper process for establishing corporate credit helps to separate the owner’s personal finances from the finances of the business; in so doing, the liability protection afforded by the corporate veil is strengthened.
Tax Savings
Corporations are taxed at lower rates than individuals. Corporations can own shares in other corporations and receive corporate dividends at reduced tax rates. Additionally, the owners of a corporation may qualify for various IRS-qualified employee benefit plans that can be used both to compensate employees and to reduce corporate income taxes. There are also significant advantages to providing health insurance or child care through the corporation as opposed to purchasing such products or services with after tax dollars.
Privacy
While the landscape of corporate formation is rapidly changing, it is still possible to formulate a corporation so that the outside world cannot readily discern the owners or active directors/officers. This can provide critical privacy for high net worth individuals seeking to avoid the focus and efforts of litigious individuals searching for deep pockets.
Zapper Credit Solutions
777 N. Rainbow Ave. Ste#250
Las Vegas, NV 89107
Tel: 1-866-854-5513 |
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