Profitability is the key word if you are considering whether you are to conduct business in your own name or in the name of a limited company.
Ms. K.F. Sun of Sunny Sun & Associates talked about the advantages of using a limited company to conduct business over employment under one's own name. In short, it is inexpensive to incorporate a company. Advantages could be far-reaching. The tax rate for profits up to $400,000 is only 17.6% compared to an average of over 30% for personal tax rates. Losses could be carried forward and off-set against future profits. Profits are spread out to shareholders instead of converging onto a single individual, and thus would be subject to lower marginal tax rates. Liabilities are limited. The name of a company is automatically branded without a patent application.