With the online world becoming an increasingly busy arena for business operations, many online companies are getting themselves incorporated to take on the many excellent benefits that this business structure offers. The gap between the virtual world and reality is getting close with the advent of new technology and its increasing popularity with consumers around the world. The same principle applies in legal sense, as online businesses are subjected to many identical laws that normal businesses undergo.
Getting your business incorporated means that the business itself is to be treated as a separate legal entity distinct from the individuals that comprise its ownership. This enables the business owners to be in a state of exemption from many legal matters. Below are three of the most important reasons why you should be considering getting your online business incorporated.
Limited liability safeguards your personal assets and attracts investors
Typically, when you incorporate, you are not personally liable for the debts and obligations of your business as corporation owners (stockholders, directors and officers) are limited in liability to only the proportionate amount of their investment. Thus, having limited liability is also a fantastic incentive for potential investors to join your business. Potential investors are much more likely to be attracted to your business, as they know that if they do buy a share in the business, their personal assets will be protected against the claims of creditors and lawsuits. This opens up a whole new world of opportunities for you and your business, giving you access to financing and industry contacts that can help you to flourish and succeed. The fact that the owners are not held personally liable for debts and any other legal issues can give you an excellent boost in the business world.
Transfer of ownership is much more easily done when you incorporate
Because incorporated businesses gauge ownership in shares, it is far easier to transfer ownership to buyers than other forms of businesses. With other forms of ownership, there can be lots of legal requirements to get through, something that is incredibly time consuming and potentially costly to you.
Incorporated companies have the longest lifespan (which can be endless)
Many companies cease to exist with the death of an owner – a corporation is not the same. This allows you to focus on achieving your goals without worrying about the legal aspects of your legacy.
To conclude, it is immediately clear that incorporating your online business can provide you with invaluable benefits. It also offers a great platform on which you can move forward and expand. Online businesses are no different to normal businesses, so incorporating is a wise thing to do if these benefits appeal to you.
This article was written by the team at Company Startups.ie, an experienced group of company formation and business experts.