When your business starts growing, the next step to look at is incorporating your business. There are many pros and cons to making your business a corporation, but fully educating yourself on the process relieves any potential stress that may come along with incorporating your company. You need to know about the certain aspects of incorporating your business in order to make the outcome more efficient and easier.
The Application is Easy
The application for business registration BC is simple. You or your partner need to file a form with your state stating why you are acquiring corporation status, what you intend to achieve with your new corporation, mailing information for your business, stock information, and the individual rights that will be afforded to anyone in your business. With an application this easy, a corporation starts to look like the right route to take.
It Lasts Forever
When you die, your business will most likely die. Unless a relative takes over the family business, you will lose the legacy you have built. A quick and permanent fix to this problem is incorporating your business. It ensures that years from now, the company you founded will still be running effectively.
It Means More Paperwork
One of the downfalls of incorporating your business comes with the increased amount of paperwork and record keeping. Since your business is now a legal entity and will last a very long time, documentation of your business is crucial to maintaining a positive image with the state authorities. If you are willing to do the work, then a corporation is something you need to consider.
It is More Expensive
Partnerships are much less costly than forming a corporation. Once a partnership is established, much of the paperwork and costs associated with the process is finished unless another partner wants to buy into the practice. Various fees will continue to apply to your business if you decide to incorporate.
It Raises Investment
Where you once held the shares in the stock market for your whole business, now your share will be separate from your corporation. You use your incorporated company to buy stocks and other types of investments, but that does not tie your money to the rest of your business. As a result, a corporation means much more investment opportunity for you and your employees.
Once your business reaches a certain level, the next logical thing to do is to incorporate it. However, before you do, you need to know the advantages and disadvantages of incorporation. The whole process will run a whole lot smoother if you do know the pros and cons. Go Corporate can help you incorporate in BC.