Advantages and disadvantages of Incorporation
Advantages
*Separate legal entity and related limited liability and capacity to sue.
*Perpetual succession
*Affords protection of personal assets
*Reduced tax exposure and scope for tax deferral
*Favorable pension provisions
*Easier access to capital
*Enhanced credibility
*Superior business name protection
*Easier transfer of ownership
*Scope for income splitting
*Creation of a director’s current account on transfer-in of assets
Disadvantages
*Additional regulatory requirements and associated cost
*Increased corporate disclosure and related lack of privacy
*Additional tax requirements and potential double taxation exposure
*Significant director’s responsibility
*Detailed winding-up provisions
To discuss the implication of incorporation on your business plans, contact john@johnoconnellandco.ie