Determine whether you would incorporate and state the advantages and disadvantages doing so.
I think that incorporating this facility would be the best route to take, by incorporating the facility it will give the business a long lasting business basic. Meaning that if the owner of the business was to die it wouldn’t necessarily mean that the business would have to come to an end. By incorporating the business you will also be in a position to prevent legal battles by family members who may have a claim as well, this just means that the business can continue on regardless of any untimely death of any shareholder, executive officers, or managers. Also, ownership of the business can be transferred by simply selling stocks in the corporation.
Incorporating has its advantages and disadvantages some advantages why a company should incorporate would be fundraising, fundraising is easier when a company incorporate because stockholders and investors know that if the business that they are investing their funds in is in a corporation their personal assets are safe if the company gets into any type of litigation or debt problems. Another reason why a incorporating could be a good move for a company is the tax advantages, by incorporating businesses will have a lower tax rate than they would if they were to operate as a partnership or sole proprietorship. For instance business owners can adjust the salaries that they pay themselves in different ways that would have an impact on the profits of the corporation. It can also be much easier for a business to invest in pension plans and other fringe benefits as a corporation because these benefits can be counted as tax-deductible business expenses. Another advantage is your personal assets will be protected this just means that a corporation is responsible for its own debt a corporation can own their own property, incur liabilities, carry on business and a corporation can sue or be sued. Also, creditors that deal...