My Corporate Identity
As a business owner, manager, administrator the risks are enormous because my personal credit and financial information are closely related to my business. My identity and the company one are only one, which results in everything that directly or indirectly affects the company.
There is also the risk of identity theft, the business being a small business corporate identity theft can result in the inability to meet payroll, tax obligations or payable bills. There is also loss of business income, sometimes the company is unable to meet its personal and tax obligations and purchase the necessary supplies. The consequences is unpleasant and end up in the obligation to dismiss employees, make reductions and even pay commercial obligations from
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Turning my business into a company can have advantages and disadvantages.
The benefits of being a company.
Transforming my company will have a perpetual existence. As the company is a legal entity, it has an unlimited duration allowing it to survive effectively to its shareholders. The company will not die because it has its own identity, its survival will not depend on the shareholders, even if the shareholders decide to relocate, to dissolve or to merge the company with another company. There is no limit to the life of the company, it can go through many generations of investors.
By changing, ownership does not stop the operations of the company. By becoming a corporation, I will no longer be directly responsible for the debts of the company where my finances and those of the company will be separate, my responsibility for the debts and losses of the company will not go beyond the amount of my investment. Being autonomous, the taxes of the company are separate from my personal tax liabilities. The corporation is responsible for the payment of the corporation 's taxes on any profits of the corporation. Incorporation protects my personal property from legal
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Despite the multiple benefits there are also some of disadvantages. The corporation having become taxable, its income will be subject to tax. This will lead to double taxation. When shareholders receive dividends they will have to include it in their own calculation of taxable income. This has the effect of paying twice the taxes.
The Company will have to maintain adequate documentation with more registrations than other business entities. It will produce annual reports and tax returns and keep corporate bank accounts and records separate from personal accounts. The records of the shareholders ' meetings, the records of the meeting of the board of directors, the licenses and other corporate documents are also
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