Corporation

If you’re starting a business, you can do that without incorporating. But as your business grows, you don’t want to be held personally responsible should you-know-what hit the fan. You form a corporation (or “incorporate”) so that it’s your company—not you, as an individual—that is held responsible. A corporation is its own living, breathing thing: it can enter into contracts, hire employees, borrow and loan money, and pay taxes—all of that fun stuff you can do, but without dragging your personal name and assets along (that’s a good thing especially if it gets dragged through the mud).If you’re starting a business, you can do so without incorporating. But as your business grows, you don’t want to be personally held responsible should the you- know- what hit the fan. So you form a corporation (or “incorporate”) so that it’s your company— not you, as an individual— that is held responsible. A corporation is its own living, breathing thing: it can enter into contracts, hire employees, borrow and loan money, and pay taxes— all of that fun stuff you can do, but without dragging your personal name and assets along (that’s a good thing especially if it gets dragged through the mud).

« Back to Glossary Index
2017-12-12T19:57:37+00:00

Leave A Comment