Credibility is important for small businesses and large corporations alike. Before customers decide to do business with you, they must be confident that you will keep your promise as a service or goods provider. A credible company is also more attractive for highly qualified employees as well as investors. For a company, protection of its business name is a must, as your business name is one of your most important brand assets.

A corporation with perpetual existence has numerous advantages. A perpetually existent business entity can continue to attract investors and generate funds even if it changes directors, officers, and shareholders. A perpetually existent company can create a long-term plan for profit growth, which adds more security for shareholders and potential investors.

Having tax flexibility is one of the perks business owners can enjoy regardless of the form of their business entity. Every business entity needs to pay taxes in one form or another. A company’s business structure plays an important role in determining the amount of taxes the owner will pay. However, an owner has the freedom of choosing a form of business to enjoy tax flexibility and tax deductions he can claim.

Expenses that are only partially deductible for a sole proprietorship can be fully deductible for an incorporated business. Deductible expenses can significantly reduce reported income and therefore the amount of income taxes owed.