Reasons to incorporate (continues...)

The third reason to incorporate is the benefits from corporate capital structure

Corporations are the preferred vehicle for raising private and public startup and expansion capital through the sale of stock to investors. The corporation can also easily accommodates employee capital participation by providing stock option, bonus and purchase plans. This helps the corporations raise capital and also attract long term, quality employees who want to share ownership in the corporations.

The fourth of the reasons to incorporate your business lies in the activities and future planning of the corporation

When incorporating, the corporate form has a number of built-in ownership and activity layers-made up of

• shareholders,
• directors and
• officers.

This corporation legal set up allows a number of people to sensibly participate in the operations of the corporations. This built-in division of activity and authority becomes important as the corporation becomes larger and needs to look beyond the owners to find people to help manage and fund the corporation business entity.

The corporate form is designed to allow corporation owners to set up and make changes to these activity layers with standard paperwork and procedures by electing new members to the board, appointing new officers and issuing stock to new investors.