Business Structures: What is An Incorporated Business?

Nowadays, business incorporation has become a widely used term that refers to
almost any structured business. However, is it important to note that an
incorporated business is different on many levels, compared to the other
business structures.

An incorporation is a legal structure that can take many shapes. These can
include limited liability companies (LLCs), corporations, S-corporations and non-
profit, for instance.

When it comes to business incorporation, remember that whatever the structure
you choose should not necessarily be permanent. In fact, toucan change it and
go from one structure to another one as your business matures.

Generally, the advantages of an incorporated business can include:

• The Protection of Personal Liability

An incorporated business allows its owner and shareholders to protect their personal assets from those belonging to the corporation. Since it is considered

as an independent entity, the corporation is only liable for its assets, debts and
obligations, regardless of the financial situation of its owners or shareholders.

• Potential Reduced Taxes
Many tax benefits can be offered to a business once it is incorporated.These
benefits can greatly help in the management of a corporation's financial
situation, even though they might only apply under certain conditions.
In all cases, it is essential to discuss these benefits with your accountants to
explore the different areas where the benefits are applicable.

• Capital Increase
Once a business is incorporated, it is considered to have an independent
corporate identity. As a result, your business will gain more credibility. This will
encourage shareholders to buy stocks and securities to become part of your
incorporation’s success and contribute to increasing its capital.

Business incorporation can offer you many advantages. However, choosing
which structure to adopt highly depends on your business activity. At the end of
the day, there is no right or wrong structure.


In addition to that, the laws vary from one state to another. Therefore,consulting an attorney is important to ensure you are making the
right decision for your business.