Answer:
A company, or incorporated business, is its own legal entity and this brings with it a number of big advantages.
The first is limited liability. Unlike the sole trader and partnership structure, a company is run by a board of directors. The company has its own legal identity, which shelters or ‘veils’ its directors from personal liability, meaning that individuals are protected against the debts of the company and any legal suits against the company. This also gives you greater personal asset protection.
Secondly, there are considerable tax benefits as the profits are taxed at a lower rate than personal income, and tax is deducted for superannuation contributions made for employees. You can also generate revenue by bringing on shareholders, and investors are also more likely to invest in an incorporated entity.
