In order to have a successful business, you have to dedicate all your time and efforts towards this goal. It can take months or even years before you can have a stable business, and even then you have to be very careful and avoid or overcome obstacles that might encounter. Many business owners hesitate to incorporate their business. Here are some reasons why you should incorporate your business.
- Unlimited existence. In many states, the life of a business is strongly connected to the life of its owner. In other words, if the owner dies, the business no longer exists, even if there is family that can take over the business. If you incorporate it, this concern disappears as there is no legal limitation for the life of a corporation.
- Flexibility. What if you want to retire and you want to allow someone else to take the lead? If you have the business on your own, this is very difficult and there are many legal obstacles in the way. If you are part of a corporation you can simply sell, donate, or transfer your shares to anyone - family or friend.
- You can expand your business much easier. It is tricky to convince someone to invest in your business if it is not incorporated. They have no guarantee that they can sell their shares, and you can give no guarantee, it is doubtful that they will be seriously interested in developing the business.
- You will have a legal precedent. If you ever encounter a problem with your business, you can easily solve it if it is incorporated. There are so many lawyers, laws and companies that are specialized in corporations, but things are not so easy with private businesses.