Tactic 11: Legal

Introduction

An entrepreneur should incorporate their business when they are ready to take on investors, protect their personal assets, and establish a professional business structure. This may happen when the business is generating revenue and has a clear plan for growth and expansion. Incorporating can also help with tax planning and creating a separate legal entity for the business.

Incorporation is important for an entrepreneur starting a new business for several reasons:

• Legal protection: Incorporating a business provides legal protection for the entrepreneur and their personal assets. This means that if the business incurs any debts or liabilities, the entrepreneur's personal assets will not be at risk.

• Tax benefits: Incorporating a business can provide tax benefits, such as the ability to claim certain deductions and tax credits that are not available to sole proprietorships or partnerships.

• Professionalism: Incorporating a business can add credibility and professionalism to the business, as it shows that the business is a legitimate and organized entity.

• Funding opportunities: Incorporation may make a business more attractive to potential investors and lenders, as it demonstrates a level of commitment and professionalism.

• Long-term planning: Incorporating a business allows for long-term planning and growth, as it provides a clear structure and governance for the business.