Corporations are the leading business vehicle in modern
commerce. For start-ups, properly structuring and incorporating is
critical to avoid disputes and protect the corporation (and the
founders) and its assets if they do come up, and avoid the time and
expense of doing it over later. It's also critical to best
position the business to attract investors and strategic partners
and, ultimately, achieve a successful and profitable exit (by
acquisition or otherwise) if that is the ultimate goal. Doing it
right means thinking and planning ahead.
Here are ten key considerations every founder should think about
when incorporating their start-up.
- Timing
The three
main ways to structure a business are sole proprietorship,
partnership and incorporation. Most businesses kick off as a
sole proprietorship or partnership: one or more owners/operators
responsible for all aspects – including risks and liabilities
– of the business. But at some point, founder(s) are ready
