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.
- 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.
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