Elaine and Roy are registerd 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.
General Reasons on the importance of incorporation:
1. Establish that there is a separate legal entity that will assume all liabilities for the business. This will safeguard the personal assets of the people wanting to start the business. Incorporation grants the business a separate legal personality which grants the corporation certain protections, rights, responsibilities, privileges, and liabilities under the law.
2. Whether the corporation is composed of one person or several, incorporating the business establishes a corporate identity projecting credibility, sophistication, stability, and a sense of permanent.
3. Incorporation gives a business the opportunity to raise capital by issuing stocks to investors.
4. Incorporation gives a business a tax advantage and savings because corporations are taxed at a lower rate than individual parties.
5. Incorporation gives a business a ...
This is a 527 word document with sources cited explaining why incorporation is an effective idea for a newly established home health agency. The scenario of the assignment involves two registered nurses who want to start a home health agency. The document explains the general reasons on the importance to incorporate, steps to incorporate, and how to terminate a corporation.