Business is a risky proposition. As a matter of fact it is also said the higher the risk, the greater the benefit. There is no denying that discretion is the better part of the valor, as the potential downfall might lead to complete financial failure and recovering could be a mammoth task. That's why incorporate is important to know how much money you should risk, and incorporating a business venture reduces the risk and the personal liability.

In simple terms, there are many advantages to incorporating a business. They are personal liability, tax advantages, anonymity, perpetuity, easier access to capital and transfer of ownership. It is worth mentioning in this regard that why incorporate is made up of a group of persons called shareholders. Furthermore each has limited investment in the venture. Moreover the benefits they accrue are in the form of salaries if they are employees, as well as dividends and capital appreciation if the shares are listed. In case if the business incurs any loss, the shareholders are liable only for their investments. In addition their personal assets are protected.

Corporations enjoy many tax advantages when compared to proprietorship and partnership. As a matter of fact many expenses like rents, insurance plans and retirement plans can be claimed for deductions. Furthermore in proprietorship and partnership, debt is the only way to raise capital. Fact remained that this comes at a higher interest due to unlimited liability. But always remember that corporations can raise capital by selling shares and can borrow money from institutions because of the credibility. As it is worth noting that ownership is held in the form of shares, it is easy to transfer ownership by selling the shares. Point to be noted in this regard is that corporations exist on their own by their legal entity status. In theory this makes why incorporate live longer and provides the founders anonymity, as they are separate from the corporation.

It is important to note that incorporating a business allows for public scrutiny, and the founders have a responsibility to society to file returns properly and follow laws set by the state. In addition it is important to understand that incorporated business is not their alter ego, but a separate legal issue. There is no denying that you could save hundreds of dollars by incorporating yourself without a lawyer.

The question now arises: How and is it advisable to do so?

1. This is Not A Legal Advice!

Always remember that the only ones who should be giving legal advice are those licensed to practice law (in other words, only lawyers). That does why incorporate, if you need legal advice, consult a lawyer.

Though you can form a corporation or limited liability company without a lawyer, but it depends on the situation.

2. Why Use a Lawyer?

First and foremost, if you make a mistake incorporating yourself, whom do you sue? In that scenario you only have yourself to blame. On the other side of the coin, a lawyer has insurance to cover errors and omissions.

Secondly, there is no denying that you could benefit from the expertise of your lawyer. Fact remained that perhaps a corporation isnt the right vehicle for you under your circumstances. That's why, be aware that there can be disadvantages as well as advantages to incorporating. It is worth mentioning in this regard that your lawyer can consider commercial law, securities legislation, limited liability, tax factors, estate planning, share structure, and a myriad of other business considerations. More often than not the advice of a good lawyer can save you thousands of dollars.

3. Is it Advisable to Incorporate Yourself

The question now arises: Is it advisable to perform surgery on yourself. Always remember that it is illegal to perform surgery on someone else unless you are licensed to practice medicine, but perhaps in a wilderness survival scenario, self-surgery might be your only option. Though, is performing surgery on yourself really a good idea in most instances

Just like that because it is possible to incorporate yourself without a lawyer doesn't mean it is always a good idea.

Fact of the matter is in some jurisdictions, only lawyers can incorporate others. It is worth pointing that for a paralegal or other person to incorporate a company for you could be considered unauthorized practice of law. Therefore, it may be legal to incorporate yourself but not others.

Some factors you might take into account are: Are you really that short of cash that you cant spend the extra money for good legal advice that may save you thousands of dollars. Are you confident that your situation is one that really doesn't need the services of a lawyer to incorporate? Furthermore, can the money saved on legal fees be better utilized in financing other aspects of your business?

There is no denying that each person will have to make their own decision on whether or not to seek the services of a lawyer in forming a corporation.

4. How To Incorporate Yourself.

Theoretically speaking many books has been written by lawyers on how to incorporate yourself. Furthermore forms, corporate supplies, name searches, and kits are available from legal stationers and other sources.

For example, in the United States, there are likewise many manuals available for incorporating yourself in various states. "Incorporating Your Business For Dummies" by The Company Corporation and "How To Form Your Own Corporation Without a Lawyer for Under $75.00" by Ted Nicholas are two such books that can help you immensely in incorporating.

In some cases helpful information on this subject is available from federal, provincial and state governments for free or nominal cost.

In addition you can sometimes locate incorporation manuals at your local library for free. Be careful because legal manuals become outdated very rapidly. As a matter of fact you might consider very seriously purchasing the most up-to-date manual available; it might also include helpful reference material on maintaining corporate minutes and other helpful suggestions on operating your corporation.

It is advisable to buy the appropriate manual and supplies and then follow the instructions. There is no denying that with a little effort, you could save hundreds of dollars incorporating yourself without a lawyer.