Startup: 8 Reasons to Incorporate

Have heard that you need to incorporate, but do not understand why or how it will help your business?

Or maybe you have already formed a corporation, but you’re not sure what you need to do next.

In the video below, I provide these important “8 Reasons to Incorporate” and how it can help you create Your Great Business.

8 Reasons to Incorporate:

1. Create Value

• Collect and capture the company’s “secret sauce” initially and overtime.
• Founders need to contribute all of the “secret sauce” to the corporation at formation.
• You will need to put agreements in place to make sure that the company’s intellectual property and developments are properly assigned and owned by the company.

2. Ownership

• Keep track of the company’s owners for corporate decisions, financings and the future sale of the company.

3. Raise money

• Raise money by selling shares to finance the continued operations and growth of your company.

4. Management & Control

• Organize your business with a formal corporate structure with stockholders, a Board of Directors and corporate officers.
• Motivate management with equity incentives and hold them accountable.

5. Employees and Consultants

• Let the corporation hire and fire your employees and consultants and separate yourself from related liability.
• Use equity incentives to motivate and reward long-term performance.

6. Separation and protection

• Keep your personal assets and affairs outside the reach of the company’s creditors.
• Limit your liability and business exposure by conducting business through the corporation.

7. Business Deals

• Use the corporation to enter into business deals to increase the value of your company.

8. Exit opportunities

• Sell your shares and ownership in the company, or sell the corporation when the right exit opportunity presents itself.

Your Turn:

I would love to hear about how you plan to use your new corporation and if these 8 Reasons to Incorporate were helpful.  Please feel free to contact me directly, or comment below to share your startup experience with other