Home - Business - Ask an ExpertForms Of Incorporation: A Simple GuideThere are various forms of incorporation available. Which type will be suitable for your business? Incorporation is a legal process leading to the formation of a corporation. Before incorporating your business an important question which arises in your mind is: There are various forms of incorporation available, which form should be suitable to my business? Related Writings: What To Do With Structured Settlement Cash - Some people look upon structured settlement cash as a windfall that is to be spent as quickly as the money rolls in. To answer your question we have compiled a comprehensive guide to almost all forms of incorporation. To see the types of offshore investing companies click here. A brief introduction and pros and cons of mostly used forms of incorporation are given below: * Sole proprietorship: - This is the most famous form of small enterprises worldwide. If you own a small or a part time business, dont want to expand it, and want to be free from the hassle of filing returns and maintaining records, a sole proprietorship is for you. Related Writings: Secrets to Buying Phuket Apartments - One question we are constantly asked is if you have to obtain permission from the government before purchasing Phuket property. To buy a condo or apartment in Phuket is very simple if you are a non-Thai. - The disadvantage of this type of business is worth noting. Sole proprietors are personally liable for all the debts of the business. * Partnership: - One of the most important forms of incorporation is partnership. When you want to inject investment in your business and dont have enough capital, you can add a couple of friends or other willing investors into your partnership business and share your profits and losses accordingly. Related Writings: The Secrets of Highly Effective Networking - We have come to observe the enormous growth of the network marketing industry. It is manifested from the billions of people who have participated in it, to the billions of dollars' worth of goods and services that have been sold through it and by it. - A partnership is preferred when there is a family business and all of the family likes to be involved in the decision making process. Alternatively, when close friends bringing different skills to the business want to work together. - A major disadvantage of this form of incorporation is unlimited liability. - There is another disadvantage. There is no perpetual succession. In many cases a partnership is dissolved when any partner leaves or dies and a new partnership needs to be constituted whenever a new partner is needed to be inducted! Related Writings: Commercial Business Burglary Prevention - Ninety per cent of burglary prevention is physical security. If your complex is locked up and unauthorized entry is made difficult, time consuming, noisy and visible, chances of a successful burglary are kept to a minimum. The burglar will pass up your business and look for an easier target. * Limited Partnership: - This type of partnership is available in some countries nut not in others. - A limited partnership has all the characteristics of a normal partnership except that the liability of the partners is limited to the amounts of the capital invested by them; hence there is no personal liability. - This makes limited partnerships attractive and more practical than simple partnerships. However there is a limit to the number of partners that can participate in the company. Related Writings: Do Legitimate Home Based Businesses Exist? - It is sad, but true, that people do have enough negative experiences with trying to start a home-based business that they give up. Worse, they become resigned that home-based businesses do not work and, therefore, are not legitimate. Well, having a legitimate home-based business is viable. * Corporation: - A company incorporated under the applicable company laws of a specific jurisdiction is known as a corporation or a company; it can also be referred to as company corp. Main characteristics of a company corp. are as follows: - Limited liability - Perpetual succession - Separate legal entity - Can sue and be sued in its own name - Proper records are required to be kept - Annual, semi-annual and quarterly returns are usually required to be filed with the registrar of companies, in most countries. Related Writings: Business Brokers - Bad Practices from the Big Boys - The business broker profession has earned a poor reputation with attorneys and accountants. This is largely the result of a few national firms that use questionable marketing practices. This article analyzes a real case and exposes the practice. There are various types of corporations. Each type has its own advantages and limitations, some of these types are listed below: - Private limited companies - Public limited companies - Company limited by guarantee - Unlimited company * Corporation not for business: - Among various forms of incorporation, corporations not for business is that type which is often used by non government organizations (NGOs) and other non profit organizations for incorporating their non-profit businesses. - Special privileges are available to no profit corporation almost every country except some offshore ones. About the author: Ramapati Singhania specializes in creating and managing web businesses. His latest website http://www.incorporation-offshore-saves-wealth.com focuses on helping you to incorporate offshore companies in Seychelles, Mauritius and BVI. You can also visit his blog, http://www.ramapatisinghania.com Home - Business - Ask an Expert |