Why should a company incorporation?
Do you mean -- Why should a company INCORPORATE?
Please clarify, and we'll try to help you answer this question.
yes sorry
This article has some excellent answers for you.
http://www.incorporate.com/benefits_of_incorporating.html
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A company may choose to incorporate for several reasons. Here are a few:
1. Limited liability: One of the main advantages of incorporation is that it offers the owners (shareholders) limited liability protection. This means that the personal assets of the shareholders are typically separate from the company's liabilities. In the event of legal action or debt, the shareholders' personal assets are generally protected.
2. Credibility and professionalism: Incorporating a company can enhance its credibility and give it a more professional image. Customers, suppliers, and potential investors often view incorporated companies more favorably than unincorporated ones, as it demonstrates a higher level of commitment and stability.
3. Access to capital: Incorporation makes it easier for a company to raise capital and attract investors. With a legal structure in place, it becomes simpler to issue shares, seek funding from venture capitalists or angel investors, or even go public through an initial public offering (IPO).
4. Perpetual existence: A company has perpetual existence, meaning it can continue to exist beyond the lifespan of its owners or shareholders. Even if there are changes in the ownership or management, the company's operations can carry on smoothly.
5. Tax benefits: Depending on the jurisdiction, there might be tax advantages associated with incorporating a company. These can include lower corporate tax rates, deductions, and exemptions that may not be available to unincorporated businesses. It's important to consult with a tax professional or accountant to understand the specific tax implications for your company.
To incorporate a company, the specific process and requirements vary by jurisdiction. Generally, it involves selecting a business name, filing the necessary paperwork with the appropriate government agency, paying the required fees, and complying with any additional legal requirements such as obtaining necessary licenses or permits. It is advisable to seek legal advice or consult a professional business incorporation service to ensure compliance with the local laws and regulations.