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    Elaine and Roy are registered nurses. They want to start a h

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    Elaine and Roy are registered nurses. They want to start a home health agency, taking referrals from physicians and providing health care to homebound patients. They plan to be in business for 10 years.

    Identify the reasons why incorporation is an effective idea for their business, the steps they must take to incorporate their business, and the steps they must take to dissolve the corporation once the 10 years has passed.

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    Solution Preview

    Elaine and Roy are registered nurses. They want to start a home health agency, taking referrals from physicians and providing health care to homebound patients. They plan to be in business for 10 years.

    Identify the reasons why incorporation is an effective idea for their business, the steps they must take to incorporate their business, and the steps they must take to dissolve the corporation once the 10 years has passed.

    Solution:

    There are many reasons why incorporating would be an effective idea for this business.

    - Protection of personal assets: Safeguarding personal assets against creditor claims and lawsuits is a primary advantage. In a corporation, stockholders, directors and appointed officers are only liable up to the amount that they have invested in the corporation.

    - Ownership: Ownership in a corporation can be easily transferable to others, either as a percentage or as a whole ownership.

    - Taxation issues: Corporations have a lower tax rate than ...

    Solution Summary

    Elaine and Roy are registered nurses. They want to start a home health agency, taking referrals from physicians and providing health care to homebound patients. They plan to be in business for 10 years.

    Identify the reasons why incorporation is an effective idea for their business, the steps they must take to incorporate their business, and the steps they must take to dissolve the corporation once the 10 years has passed.

    $2.19

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