Corporation Lawyer

Corporation Lawyer

Many individuals who are looking into starting their own business have the question of do I need to be incorporated? In this article, we will discuss if having your business incorporated is right for you. Please remember that this article will give you a brief understanding of some of the benefits of becoming incorporated. It’s highly advised that you speak to an experienced corporate lawyer who can help you better understand your rights of having an incorporated business.

What Benefits Does Being Incorporated Bring?

  • Limited liability Many business owners become incorporated due to limited liability. A corporation has its own separate identity where a sole proprietor does not. In most cases, your corporation would protect your assets, such as automobiles and other property, if your business is sued, as your personal assets are not owned by your corporation.
  • Tax Savings is another huge reason why business owners decide to become incorporated. Business taxes may be lower than personal taxes, and you may choose to keep some money in your business accounts rather than taking it for personal use and paying personal taxes. A corporation has many of the same rights as a person where it can own property, automobiles, and carry a balance in the bank account. You also have the right to take your salary when you choose from the business. Many want to take their wages at a time when they would pay less personal taxes.
  • Corporate Sales & Future Ownership is another big benefit of being incorporated. If an owner of a business passes away or no longer wants to run the company, a corporation can carry on business without them. It can be sold, or gifted to relatives. In contrast, a as sole proprietor, the business is the same as the person who owns it; therefore, when the person ceases activity, the company itself also ceases.
  • Raising Capital is much easier if you incorporate. If you are a business owner, there may come the point where you would like to expand your business by raising money from investors, or by giving shares to employees. There are many private and group investors in the world that help small businesses grow by giving the company a cash injection. It is much easier to raise funds for the growth of your business if you are incorporated rather then being just a sole proprietor by selling shares or giving debt. Also, in many cases, lenders may give an established corporate business a lower rate of interest.
  • Company Name Protection unlike a sole or partnership that has virtually no name protection for the business, an incorporation gives your company a certain amount of “name protection.” If anyone copies your name for their business, you may have the right to stop them. This protection is much stronger if you have a trademark, which is an asset that your corporation would own and can license out or sell.
  • Increased business trust is also important. Depending on the type of business you run, having “Ltd” or “Inc” in the name can create more trust with customers or clients, trades, suppliers, joint venture partners, and potential investors.

How do I become Incorporated?

There are a couple of ways to make your business incorporated. The most common way for most is to seek out a business lawyer that specializes in setting a person up entirely with a corporation. The reason many turn to a lawyer is for the simple reason that they know how to set things up properly, with an accurate and complete minute book. Making a mistake when setting up a limited liability corporation can cause a problem down the road shall something unforeseen take place.

Any aspect of business should seek the advice of a corporate lawyer due to their knowledge in this field. A lawyer is there to protect, guide & advise you through your journey as an entrepreneur and will always look out for your best interests.

Jonathan Kleiman is one of the top-rated business lawyers in Toronto due to his knowledge in contracts and business dealings. Jonathan’s clients come from all walks of life, owning businesses that spread across the board in various industries. May you be a single business owner looking for incorporation or a partnership of two or more people looking to set-up a shareholder agreement within a corporation, Jonathan Kleiman is there to assist you fully.

If you are looking for a free no-obligation consultation for incorporation advice, call Jonathan Kleiman today.