Many business owners wonder why they should bother incorporating their business. Maybe they believe that business is running well unincorporated and that incorporating is just a waste of time and money. Such thinking is often the result of simply not understanding the benefits offered from incorporating.

Incorporating provides extra protection for your personal assets. By incorporating your business you create a barrier (sometimes called a veil) between your personal assets and any liabilities of the business. Generally speaking, incorporation allows you to only risk your investment in the business. While that maybe very significant, it nevertheless excludes your home, cars, and personal bank account from satisfaction of any civil judgments of the corporation. As such, incorporation brings peace of mind.

Corporations also live under the legal fiction that they are separate entities. They can enter into contracts, sue (and be sued) and in some cases pay their own taxes. They are often looked at with higher regard than businesses that are not incorporated. There are many other perks to incorporating your business beyond these.

As part of the incorporation process, many documents need to be prepared, such as articles of incorporation, by-laws, and stock certificates in some circumstances. Other requirements must also be met. In order to truly understand these, it is important to talk to an attorney experienced in the incorporation process. Alan Geraldi has been practicing corporate governance and corporate formation for years. To set up an appointment with him call (925) 236-0045.