Читать книгу Start & Run a Home Cleaning Business - Susan Bewsey - Страница 18

A corporation is a business entity which acts as a separate and legal person, owing to legal setup. Generally, private investors (shareholders) have less exposure to liability since any risk is limited to what they have invested.

For a home cleaning business, the advantage of this structure is that it has the ability to raise capital or bank support for large projects. There can also be tax advantages, and principals generally are exposed to the limit of their investment in the case of business failure.

The disadvantage is that incorporation fees are expensive, and it is necessary to have professional tax planning advice to maximize any corporate tax breaks. As well, annual reports are required, and information is available to the general public, which is not always desirable.

Your decision about which legal structure to adopt should be based on the following considerations:

• How much and what kind of financing is required?

• What is the degree of technical skill required to run the business?

• Is there a need for outside expertise?

• Is there a need to separate business and personal life?

• Is there a need to protect business and personal assets?

• Will there be a need to sell stock or shares in the company?

• What structure feels best to you?