Why incorporate or constitute a business corporation?

The incorporation or constitution of a business corporation comes to limit the personal responsibility of its directors. It is managed by one or several directors, appointed by the shareholders. The business corporation has a name, a head office and its own patrimony, distinct from the one of its shareholders. The directors and shareholders are not personally responsible for the debts of the business corporation.

A business corporation has a perpetual existence; it does not cease to exist upon the death of its owner, which assures the business corporation a certain stability and can allow to access more easily to financing arrangements. The corporate taxation can also be a factor in your decision to choose the incorporation for your business as well as the protection of your assets in the face of certain creditors.

The incorporation of a management business corporation can also turns out to be a wise decision when the operating business corporation takes some expansion.