Home Forums Business and Legal Incorporating Business Advice Reply To: Incorporating Business Advice

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Anonymous
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Hi,

I don’t want to step on anybody’s toes but… here you’ve got some good advice and some really misinformed one. So consider this: if you are a legal partnership you are good already. Incorporating makes things more difficult and you can just leave it in case you actually need that. When do you need incorporating? Well… easy: when you see some money running in. With money come also difficulties and taxes, so at that point (on only at that point) do incorporate, so your taxes will be almost erased and your liabilities as well, because the members of a limited liability company are not liable in person, but only via the funded shares. Never incorporate an unlimited liability company! Banks love that because they can come after yourself as an individual to recover money in case the company can’t pay a loan. So botton line, do not incorporate unless there is money flowing (or you got a startup funding) and always incorporate as a limited liability company ;)

And when you get there… do appoint an accountant and an external secretary, or you will get in troubles with all the paperwork that entails running an incorporated company.

-Pino