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Is it true that a new business should incorporate?

On Behalf of | Apr 17, 2013 | Uncategorized

That question can’t be answered without a lot of specific things being considered. Such as: how many employees will the business have, how many owners will the business have, what kind of service or product will the business produce, what are the goals of the organizer(s), etc. There are a number of potential types of business organizations from which to choose. These include limited liability companies, partnerships, limited partnerships, for-profit corporations, and others. Each kind of entity offers different advantages and disadvantages. While generally limiting liability is easier to accomplish in a corporation or LLC, there are circumstances in which the “corporate veil” can be pierced and there are situations where incorporating doesn’t help (if you have a small company and have ever gone to a bank for a loan, you have probably found that the bank wants you to sign personally despite the fact that you have a corporation in existence). There are even situations where one-person corporations have not avoided personal liability. Think of a case in which a sole owner of a corporation is involved in a car accident that is her fault. The liability for the personal tort is not blocked by the existence of the corporation in that situation!
We are available to discuss business organizations and to provide services in setting up new entities.