Facts About Company Incorporation Services That You Should Know
If you are a budding entrepreneur, you have probably thought about incorporating your company. Corporations can do several things that people can do, such as signing contracts, owning property, filing lawsuits, and owning bank accounts.
Incorporation of a company is administered by the terms laid out in the Companies Act 2013, which declares a company as an association of individuals created to do business. It is like a legal entity that protects the owner from being held accountable for corporate debts and incumbencies.
So, if you want to incorporate your company, you need to know all the facts about company incorporation services.
Names of Decision-Makers
Your articles of incorporation must state the names of some of your decision-makers. The two types of decision-makers are directors and incorporators. An incorporator is a person accountable for signing, preparing, and filing the articles of incorporation. The board of directors is responsible for setting corporate goals and policies and selecting officers who will manage the corporation’s day-to-day business.
You will have Protection Against Your Personal Assets
The biggest reason business owners choose to incorporate the company is to keep their assets separate from those of the business. If you use your credit card to cover for a business expense, then your assets can be used to pay for any business debt which your company fail to cover
Physical Address in State of Formation
The articles of incorporation must state a street address within the state, the name of the person located at that address who can accept legal documents, lawsuits, notices on behalf of the corporation. The address is stated as a registered office, and the person at the location is referred to as a statutory agent.
Your Business Name
The name of any business must be different from any other company registered in your state. You can use an online search tool that enables you to review similar business names, and also, the name of your business must end with “Company,” “Incorporated,” or “Corporation.”
Boost Your Business Credit
After incorporating your business, you can avail of business loans and credit cards in the corporation’s name. Through incorporation, you can easily separate your personal and business finances and gets assistance in building credit under your business name.
The corporation’s life does not depend on the life of a particular individual. Unlike proprietorships and partnerships, it can continue until it fulfills its objective, merges with another business, or becomes insolvent.
Names of Business Owners
Shareholders possess shares in the business. So, you need to specify the number of shares of stock that your corporation is authorized to issue. But you don’t need to state the names of the shareholders. Your internal corporate records must contain your shareholders’ names and the number of shares of stock issued to them.
Maintenance Is Required
Incorporation relieves you from demanding tasks, but you cannot neglect the corporation entirely after establishing it. After constructing the structure of the respective entity, it will need some management frequently, requiring proper care, attention, and workings.
No Lawyer is Required to Incorporate
Some people think that it’s compulsory to have a lawyer to incorporate, which is not valid. You can do the paperwork yourself without any lawyer.
Do Some Research Before Finding a Professional
All knowledgeable professionals and firms are not the same. One of the most crucial steps before setting up a company is to understand whether the people you depend upon are competent in handling your kind of business.
Gain the Trust of Customers
You might attract more customers after incorporating your business. Having added that “Incorporated” at the end of your business name builds trust in customers and makes your business look more reliable.
The most significant reason for incorporating a business is to limit your liability for business obligations. Also, a corporation’s ownership is contained in shares that can be easily transferred from one owner to another. Unlike a sole proprietorship, a corporation remains to exist beyond the lives of its founders. Company incorporation service is the right choice if you want to sell the business or draw external investors.