- Joined
- Mar 30, 2016
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- 34,697
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- Location
- Massachusetts
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- Independent
My business was incorporated. I was technically an employee of my own corporation yes, but ALL the money risked in starting and running that business was mine and my husband's. Do you think corporations just materialize money out of thin air and nobody risks anything by expending all that money for infrastructure, equipment, raw materials, insurance, transportation, legal fees, utilities, and other overhead, advertising/marketing and hiring people who may or may not produce as much as it costs to hire them?
It is different for a small business and I acknowledge that. Your personal experience is not representative of the dominant large corporations in the country. Even a small business can borrow money, which puts risks also on the lender. Also, incorporating removes personal liability and allows you to protect your personal assets. So any income your business paid to you will remain yours as well as your other assets such as your home. Only a sole proprietorship risks losing everything, including personal assets. Yes there is always risk in business, but in most large corporations no one is at risk of losing more than the employees who depend on their jobs for their livelihood. There are usually no golden parachutes for them, unlike those provided for by upper management.