I wonder why business owners incorporating their businesses. What are the benifits actually? For example, I personally owned a multi million dollar company. There is no other owner except me and I have a couple of hundreds of employees. I can finance and I have a lot of money to back-up my business.. Give me specific reason why I need to incorporate my business publicly and share the stocks and give other people the chance to take part in top management... Thanks
Are you talking about an IPO, going public with the company? There are many reasons to do an IPO, but the main reason a business takes part in an IPO is to raise money for the business. On the initial offering the company gets the proceeds from the sale of the stock. Doing this can raise capital in order to expand the business.
You don't need to incorporate publically, you can incorporate privately as well, where you own 100% of shares. Incorporating separates your personal assets from the business, so if you get sued out of oblivion you're personally ok even if the company is bankrupt. There are a number of tax benefits to go along with it as well. People generally do an IPO to raise funds, called equity financing. They offer shares in exchange for money which they then use to grow the business. If you don't know this, I strongly doubt you have a multi-million dollar company.
Just to throw this out there, I'm not sure if the multi-million dollar company you run is 'physical' or on the internet, but another big IPO incentive is that since you own the shares of the company, you own the value of the company. Taking a company public is how Bill Gates and and the like get filthy rich. On a side note, the downside and why it's hard for alot of companys to do this is it can be a pretty pricey procedure. Of course I don't know if the laws and whatnot are any different where you live, I'm in USA so somebody from your country would probably have a more definate answer.
you need IPO to raise money for your business and in return you are making them shareholders in your company and they earn profits with the company..
Call me sceptical but I would suspect anyone in that position would probably make a better stab at spelling the word 'businessmen' than you did. As for reasons for becoming incorporated... there can be many. My business became a Ltd. company in the UK purely for tax reasons. Corporation tax in the UK is lower than income tax for higher tax payers.
Incorporating your company protects your personal assets from getting sued. If your company gets sued for $ 1 million.. and the business has only $10, without a corporation, you will pay out of your pocket. With a corporation, you can pay just $ 10 and run away