We can assist businesses interested in incorporating. There are several advantages to being incorporated. Many businesses operate as a sole proprietorships or partnerships. Asset protection for a sole proprietorship or partnership is severely limited. Unlimited personal liability for debts is not unusual. Even if a company goes out of business the owner may still be required to pay off business debts with personal property such as a home, car, etc. While incorporating does not guarantee that all personal assets will be protected in the event of a company going out of business, it does offer significant protections that are simply not available to a sole proprietorship or partnership. A corporation also offers significant tax advantages for many.
A corporation which is a unique legal entity allows for transactions in which the corporation is the party not an individual. Corporate transactions often allow for the benefit of certain tax laws that a sole proprietorship or partnership would not be able to utilize. It is of course imperative to consult with a certified public accountant in order to be aware of all the tax benefits and consequences of incorporating.
Corporations can be easier to sell than a sole proprietorship or partnership. The reduced likelihood that an owner will become personally liable for the debts of the company makes purchasing a corporation more attractive. Also liabilities previously incurred by a company can be avoided by the new owner.
Also, incorporating enables an individual to keep his or her identity confidential. The ability to remain anonymous can be very important depending on the type of business. Remaining unidentified offers a level of security that partnerships and sole proprietorships do not provide.
Waterbury Law, P.C. can also assist in maintaining corporate minutes as required by The State of Texas.
These are merely some of the benefits to incorporating. Contact us so that we can discuss all the benefits of incorporation and whether or not it is right for you and your company.