Should You Incorporate Your Business? Part 3

Pros and Cons of Incorporating

There are two primary advantages of incorporating your business. First, you become surrounded by the legal protection of the “corporate veil,” which limits personal liability of you and any other sharehol­ders for business debt. If you have substantial assets, this reason alone can be important – although coaching insurance can also ameliorate your risk.

A second advantage is the corporation’s perpetual existence, which means it continues to exist after the death of one or more of the shareholders.

Its primary disadvantages are the requirement of maintaining the necessary formalities and the additional cost of formation. However, these may be a small price to pay if yours is a high-risk business or for other reasons the advantages of the corporate form are desirable for your business.

Part 4 tomorrow!

If this topic is of interest to you, be sure to check out my book Launch Your Practice! Visit http://www.careercoachinstitute.com/books.htm#Launch for more details!

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