Are you thinking about incorporating your pharmacy? If you want it done right, you can rely on MKLAW to provide the legal assistance that you need. We are reliable Pharmacy Lawyers in Vaughan, Ontario Canada who are familiar with the various steps necessary to incorporate a pharmacy.
If you are still hesitating whether or not to incorporate your pharmacy, here are five reasons why you should:
- Avert Misunderstandings Between Partners
When your pharmacy has more than one founder, chances are, an argument over equity splits will arise. No matter how close the founders may be, this is a common issue that most multi-owner businesses encounter. When you incorporate your pharmacy, formal paperwork that outlines equity split will be set in place, averting any misunderstandings between you and your partners.
- Boost Your Credibility
Your pharmacy will look more credible in the eyes of your consumers after adding an Inc. after your company name. When your credibility rises, chances are your sales will grow significantly as well. Moreover, if you want to win certain contracts, larger companies prefer to work with incorporated businesses, rather than sole proprietorships.
- Owner and Business Separation
One of the biggest reasons why you should incorporate your pharmacy is to separate your personal assets from your business. Once you incorporate your pharmacy, you can gain protection against personal liability. For example, if you don’t incorporate your pharmacy, any issue (e.g. a customer who is suing you) becomes your personal responsibility. You will be held personally liable and your personal assets can be put at risk.
- Potential Tax Benefits
Generally, corporate tax rates are lesser compared to individual tax rates. Corporations typically qualify for additional deductions and tax benefits that aren’t offered to individuals. However, please take note that specific circumstances can vary, so make sure to talk to your CPA or lawyer first about your tax situation.
- Accept Funding and Investment
Before you can accept funding from third-party investors who are interested in your pharmacy, you need to set up your pharmacy entity to accept the investment. Generally, investors and other venture capitalists prefer to work with corporations.
So, if you are looking for Law Services for Pharmacists in Ontario, please reach out to us by calling 416-512-7400. Let us handle the process of incorporating your pharmacy today.