Intellectual Property News and Reports

Why Incorporate?

Operating a business without incorporating exposes all of one’s personal assets to liability. The primary reason to incorporate a business is to prevent personal liability for business debts and claims. After incorporation, claims against a business may only be paid from the business. By incorporating, a business publicly declares that the personal assets and funds of owners and investors are off-limits to creditors and anyone else who may have a legal claim against the business. By limiting liability, it is hoped that more people will invest in businesses and own businesses.