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Ph3DBIncorporating_a_business - Phase 3 Discussion Board 1...

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Phase 3 Discussion Board 1 Running Head: PHASE 3 DISCUSSION BOARD: INCORPORATING A BUSINESS Phase 3 Discussion Board: Incorporating a Business Chris Normand Colorado Technical University Accounting 202-02 Prof. Robyn Swinehart April 28, 2010
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Phase 3 Discussion Board 2 Phase 3 Discussion Board: Incorporating a Business To Good Time Adventures: To whom it may concern: Our company owner, Mr. Smith, brought it to my attention that your company is considering incorporation and wants our firm to advise you on the implications of such a decision. I applaud such action as it will give your company many benefits not available to sole proprietorships and partnerships. Yes, there are some disadvantages, but the pros outweigh the cons enough to make it worth the change. In addition, it is good to incorporate now while the business is still relatively small. There will be fewer hassles in getting everything changed over from your personal names into the company’s name. I believe the greatest advantage to the incorporation of your business is the limited liability you will acquire in doing so. When your company becomes incorporated, you (personally) will not be exposed to the liability of the company. An example would be that if anyone were to be hurt on one of your Good Time Adventure tours and decided to sue your company for damages, the company owners’ personal assets would not be at risk of being lost in such a lawsuit. There are some other advantages to consider. Since a corporation is owned by shareholders (who buy or own shares of stock in the company), it is now easier to distribute any portion of the profits to the different owners. You may even distribute non- voting shares to such people as family members or friends that you may want to eventually leave the business to when you decide to retire. You have the option to
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