My answer to Do you need to have a registered company to get funding for your idea?
Answer by Raad Ahmed:
Incorporating your business sends the message that you are “put together” which investors appreciate. Some investors may hear you out while others will not even consider meeting with you if you haven’t incorporated. Why risk missing out on a great investor? It certainly won’t hurt to incorporate your business, but failure to do so could really cause some unnecessary challenges.
Other than being more attractive to investors, incorporating also accomplishes the following:
- Protects your personal assets
- Provides credibility (not just for investors, but for your competitors)
- Taxation flexibility
- Deduction eligibility
- Can provide legal protection
Of course, there are various structures that you can choose from, which you should evaluate thoroughly. A business attorney can help you pinpoint which incorporation is right for you. Check out. We connect clients with appropriate attorneys for their needs. Our startup lawyers have already helped over 1000 entrepreneurs get their businesses up and running. Let us know if you’d like a consultation.