What Are The Differences Between Incorporated And Unincorporated Businesses? | LegalNature

What Is Business Incorporation?

Business incorporation creates a separate legal entity for your business. You may still be the owner, but by choosing this legal structure you can attain clear financial and tax-related benefits for your organization. When you incorporate your business, you choose one of several legal structures to operate under. You have several choices for incorporation depending on your current needs, your potential future needs, and even the nature of your business.

While you can choose an initial structure for your business, it can be changed as your organization grows and matures. A small business that starts as a sole proprietorship can later be formally incorporated once it grows. No matter which format you choose, incorporating has clear benefits for you and your new business.