The Benefit of Establishing a Company:
Limited liability
The main advantage of starting a company is to separate the company’s liability from the individual. If you are self-employed, your personal property, such as house, car, and all other asset could be pooled in the company’s debt. In addition, a company has the same rights as an individual, such as owning its own property, running a business taking on debts, and taking legal action, etc.
Infinite Lifespan
The existence of a company is infinite and will persist until it is dissolved, regardless of factors such as the departure or death of its shareholders.
Raising Funds
Money is able to flow freely in a company and has a better ability to raise funds. For example, companies can borrow money from banks or issue stocks. One of the major advantages of raising and issuing equity is that equity does not have to be repaid and there is no interest.
Corporate Business
An official registered company is more reputable and is able to gain more trust that an unregistered private enterprise. If you are a customer, you are more likely to do business with a company which is formally registered.
Visa to the US
American companies may be able to help foreigners obtain various business or work visas.
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