The business is not limited by the life span of the individual shareholders.
It is easy for an incorporated company to continue existing after the death of the original owners. Corporations Can Have Unlimited Life Span You will be better off, if you operate an incorporated company because as a shareholder in a corporation, you can’t be held responsible for the debts of the corporation unless you’ve given a personal guarantee. Some individuals takes pleasure in suing successful entrepreneurs just to make money. You can be rest assured that your personal assets, such as your house and car can be seized to pay the debts of your business. If you operate with a register business name instead of an incorporated company e.g BABATOPE AND SONS CO. So when the business was sued, the entrepreneur did not only loose what he invested in that particular business, but his other businesses and also his personal assets. The business was registered with the Corporate Affairs Commission of Nigeria as a sole-proprietorship business and not incorporated. In the course of the sermon he gave a pathetic testimony of an entrepreneur who almost went bankrupt because of one of his business was sued. I listened to a sermon preached by Pastor Ashimolowo during the IGOC 2008 conference. Unlike the sole proprietorship, where the business owner assumes all the liability of the company, when a business becomes incorporated, an individual shareholder’s liability is limited to the amount he or she has invested in the company. Limiting the liability of an entrepreneur to what he has invested in the business is the major reason why entrepreneurs are encouraged to incorporate their business. Well, there are several benefits that you as an entrepreneur can derive from incorporating your business. So What Benefit Can I Derive From Incorporating My Business? The business is thereafter seen as an individual that can own property, earn income, pay taxes, incur liabilities, sue and be sued. It is a legal process by which a business receives a governmental legal permission to operate as a distinct and unique legal individual (entity) different from its owners. I will be looking at What Incorporation is, Benefits of Incorporation and reasons people give for not incorporating their business. There comes a time when an entrepreneur begins to consider whether or not he should incorporate his business.
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