You might have recently started up a business and might be thinking of incorporating it. This list of reasons here will help you out with understanding why incorporating a business is a very smart move. A majority of the businesses in the world as of now, especially small businesses are seen to be taking the structure of sole proprietorship most of the time, but research does show that for small businesses, incorporating it is the best idea next to it being a limited liability company. An incorporated business offers a wide range of advantages as shown here, and it is more than enough to make you understand how beneficial it is to us and our business.
One of the main advantages of incorporating your business is that your personal assets are protected from harm. During the whole Hong Kong business registration services process to after your business is incorporated, your assets will remain unharmed and protected. In a corporation, in case of loans or debts, the creditors of the corporation cannot seek payment through your personal assets. Your personal assets will not be put in the middle of payment issues in case something negative happens. Sole proprietorship and liabilities will have to turn in their assets in case something does happen, but for corporations, your homes, cars and belongings are protected.
Access to capital
From the beginning itself, corporations have it easy. At first they inquire for business registration fees here but that is all. Even afterwards raising Capital is quite an easy job for a good corporation. Usually a corporation issues shares of stock, and this is the main reason they are able to raise a lot of capital. This entire process is a huge advantage as it helps your business to flourish and grow more quickly. It even comes in handy when you have a need to apply for a quick bank loan. Banks are quite indecisive when it comes to giving loans to unincorporated businesses, but since in-corporations have various alternative sources of capitals, they are able to pay off the loans very easily and quickly.
When it comes to incorporated businesses or companies, they are seen by the general public or by other competitive businesses as a very stable company, unlike unincorporated business. Everyone from your customers, your manufacturers and suppliers to your own business associates will credit you as a rather stable company if you are known to be incorporated. By simply having an “Inc.” After the name of your business, you are displaying a subtle yet powerful message about credibility, stability and growth.