Austin Business Lawyer

Benefits of Incorporation

Incorporation of a company can be a daunting task, but it is often well worth the effort. Under US law, a corporation enjoys many legal benefits over business structures like partnerships or sole proprietorships. If your business is important to you, taking it in the corporate direction may be a good choice.

One of the biggest benefits of incorporation is limited liability. When a corporation is formed, it gains its own, independent legal identity, separate from that of its owners, shareholders, or employees. As such, a corporation can act as a kind of “buffer” between liability claims and the personal property of owners, shareholders, or employees. This means, for example, that the personal assets of an owner cannot be seized to pay off a corporation’s debts, fines, or other financial obligations. Similarly, assets held by a corporation would not be subject to seizure in proceedings involving or against owners or shareholders.

Another benefit of a corporation’s separate legal identity is persistence. Corporations are not tied to any individual person, and can last indefinitely, even after all of its original members or shareholders have died. Employees and shareholders can come and go without affecting the nature and longevity of the corporation.

Thirdly, a corporation has the ability to raise potentially enormous sums of money through the sale of stock. The ability to raise capital is invaluable for any business.

To learn more about incorporation, contact an Austin business formation lawyer from Slater & Kennon, LLP, at 512-472-2431 today. Centrally located in the Arboretum area of north Austin, the Slater & Kennon law firm represents clients in Travis County, Bastrop County, Burnet County, Williamson County, and Hays County, including the cities of Austin, San Marcos, Bastrop, Burnet, and Georgetown.