ipl-logo

My Corporate Identity

489 Words2 Pages

As a business owner, manager, administrator the risks are enormous because my personal credit and financial information are closely related to my business. My identity and the company one are only one, which results in everything that directly or indirectly affects the company.

There is also the risk of identity theft, the business being a small business corporate identity theft can result in the inability to meet payroll, tax obligations or payable bills. There is also loss of business income, sometimes the company is unable to meet its personal and tax obligations and purchase the necessary supplies. The consequences is unpleasant and end up in the obligation to dismiss employees, make reductions and even pay commercial obligations from …show more content…

Turning my business into a company can have advantages and disadvantages.

The benefits of being a company.

Transforming my company will have a perpetual existence. As the company is a legal entity, it has an unlimited duration allowing it to survive effectively to its shareholders. The company will not die because it has its own identity, its survival will not depend on the shareholders, even if the shareholders decide to relocate, to dissolve or to merge the company with another company. There is no limit to the life of the company, it can go through many generations of investors.

By changing, ownership does not stop the operations of the company. By becoming a corporation, I will no longer be directly responsible for the debts of the company where my finances and those of the company will be separate, my responsibility for the debts and losses of the company will not go beyond the amount of my investment. Being autonomous, the taxes of the company are separate from my personal tax liabilities. The corporation is responsible for the payment of the corporation 's taxes on any profits of the corporation. Incorporation protects my personal property from legal …show more content…

Despite the multiple benefits there are also some of disadvantages. The corporation having become taxable, its income will be subject to tax. This will lead to double taxation. When shareholders receive dividends they will have to include it in their own calculation of taxable income. This has the effect of paying twice the taxes.

The Company will have to maintain adequate documentation with more registrations than other business entities. It will produce annual reports and tax returns and keep corporate bank accounts and records separate from personal accounts. The records of the shareholders ' meetings, the records of the meeting of the board of directors, the licenses and other corporate documents are also

Show More
Related

The Devil's Arithmetic Literary Analysis

738 Words | 3 Pages

The Devil’s Arithmetic is a story that takes place during the Holocaust. It is about suffering, tragedy, but also about hope and perseverance. In this story, Hannah/Chaya is the main character. It is about her life before she is transported to Poland 1942 and then during, while she is there. Both a movie and book have been made of this tale, but they are not both exactly the same.

Read More

Choosing The Best Business Structure For The Winchester Brothers Supernatural Hunting Business

1009 Words | 5 Pages

Corporation: A corporation is a legal entity that is separate from its owners, who are shareholders. Corporations have their own rights and liabilities, and the shareholders' liability is limited to the amount of their investment. The advantage of a corporation is its ability to raise capital and transfer ownership, but the disadvantage is its complexity and regulatory

Read More

Crisis Counseling Ethics

930 Words | 4 Pages

A.1.b. Records and documentation. A.1.d. Support network involvement. A.2.a.

Read More

Key Elements Of The FCPA Violation

685 Words | 3 Pages

In addition to anti-bribery provisions, the FCPA has accounting provisions that prescribes issuers maintain books and keep records of all transactions. It requires a company implements and maintains efficient internal control. While the books and records provisions are secondary, they may apply both together with anti-bribery norms as well as

Read More

Unit 4 Business Information Systems P1

1267 Words | 6 Pages

Types of information systems In this report I will explain the 4 different types of information systems which are marketing information systems, financial management systems, human resources systems and management information systems. I will also use diagrams to explain these types of information systems. Marketing information systems

Read More

The Pros And Cons Of The Panama Paper

1848 Words | 8 Pages

When a corporation seeks to increase its profits it must either raise revenues or lower costs. And when assuming the business perspective taxes are a cost and usually a major one at that. It is no wonder that a corporation would naturally seek methods to lower the cost of taxes on the business. Especially if it can do so free and legally. Now if we include values and morals the correct course for the business become less clear.

Read More

Corporate Identity In The Middle Ages

1196 Words | 5 Pages

Corporate identity was a very important part of society during the Middle Ages. People’s corporate identity granted them rights and a ranking within whatever government they were a part of. The most common system of ranking at the time was the Feudal System where nobles were the leaders and peasants and serfs were the main group serving them. However, this type of government was often tested and ultimately destroyed during the many disruptions that occurred throughout the end of this period.

Read More

Apple Market Structure

1323 Words | 6 Pages

is known as Corporation. Apple Inc. is one of the leading organizations in technology all over the world, the company had to convert its form of business organization to the corporate form so as to enable them raise the capital needed for expansion and development of new products. A corporation is legal and separate from the owner; they operate on set bylaws and procedures which regulates their operations and decision making process. These bylaws guide the stakeholders in electing the board of directors who then pick the managers. The managers are expected to run the organization with the interests of the stakeholders at heart.

Read More

Advantages Of Subway Franchise

935 Words | 4 Pages

INTRODUCTION: Changing business ownership can be very challenging. There are factors and aspects that need to be looked at to make sure you are in a place to do so without spending all your resources. Especially changing from a sole trader [a type of business entity which is owned and run by one individual and where there is no legal distinction between the owner and the business as stated by “E-conomic, Sole Trader- What is a Sole Trader?] to a franchise [a right granted to an individual or group to market a company's goods or services within a certain territory or location as stated by “About Money-

Read More

Tesco Accounting Report

1656 Words | 7 Pages

Also many companies reporting related to the state of the value added or environmental information, these are concentrated in industrial sectors. The financial statements reflect the financial position of company, financial performance and cash flows of the company, it is significant to note that the correct depiction of the impacts of transactions and other events and circumstances according to the explanations and criteria identification of assets, liabilities, income and expenses go in the same outline (Brealey,

Read More

Summary: The Ethical Practice Of Identity Theft

841 Words | 4 Pages

Impacts of Identity theft on Individuals or organizations Financial problems: Identity theft creates financial problems for both organizations and individuals. When cyber criminals acquire a victim's financial information, they can steal money from his account or take loans in his name. This can cause the victim a lot of financial problems. Identity thieves also use Social Security numbers to steal from institutions such as the government. Legal problems: Legal issues can also ensue as a result of identity theft.

Read More

Corporate Lawyer Admission Essay

1432 Words | 6 Pages

Therefore, in incorporation

Read More

Benefits Of Mergers And Acquisitions

1178 Words | 5 Pages

In this case every assets and liabilities are not individually valued and thus is a simple process. Benefits of Mergers and Acquisitions  Accelerated Growth Growth of any company leads to higher profits and increased shareholders value, provided other things remain constant. A company can achieve growth by either expanding its existing markets or entering into new markets. A company can expand or diversify its markets either externally or internally. If a company is not able to grow internally due to lack of managerial and physical resources, it can externally grow through mergers and acquisitions.

Read More

Malaysia Exchange Rate Essay

1240 Words | 5 Pages

Corporate tax rate higher charged against profits corporations to reduce foreign direct investment returns and therefore it will have a negative impact on foreign direct investment inflows by (Shahrudin, Yusof & Satar,

Read More

Self Reflection In Financial Management

1051 Words | 5 Pages

 Income data (experiences, estimates of sales, fund rising, membership etc and planned activities).  Data come from previous budgets, estimates, experience of others and public available statistics. I was also able to identify the main uses of accounting and these are as follow:  Information All organizations need to keep records of their financial transactions so that they can access Information about their financial position, including: summary of income and expenditure, the outcome of all operations, assets and liabilities.

Read More

More about My Corporate Identity

Related Topics

Open Document