If loyalty bonuses are taxable then the value of our ongoing saving to you could be reduced, depending on the rate of tax you pay. The below table gives an indication of how this may affect you. Whether you're a small or a big company, you want to be incorporated for a key reason of liability," says Robin Gerofsky Kaptzan, partner and Asia-Pacific Chair at Zahn Law Group, LLP. "If you don't have a corporation, you could become personally liable. By having a company, you're putting a shield up between your company and the world." Advantages of incorporation Corporations must do a number of things to retain legal incorporated status, such as filing an annual report; holding annual meetings; and maintaining corporate minutes, corporate bylaws, and an operating agreement. LLCs typically only have to file an annual report. Every corporation must have a director and a registered agent who agrees to receive important legal and tax documents on behalf of the business. As these new companies grow, however, many entrepreneurs come to the point of considering a new business structure and may think about creating a company or incorporating it. But they may not be clear on what that “Inc." at the end of business names really means. A key element of a corporation or "Inc." is that it is a distinct entity with a legal status apart from its owners and shareholders. An incorporated business is seen as its own "person" under the law. This separation limits the owners' personal liability and allows the business to live on after an owner's or shareholder's death.

When they decide they want to incorporate, I always ask clients, 'What's your end game? What's your exit strategy? Where do you want to be in five or 10 years?'" says Kaptzan. "All of these questions and many more should be considered at the very beginning of setting up a business." Liability protection

Why is this fund on our Foundation Fundlist?

There's a concept called piercing the corporate veil, allowing a person to challenge you and say, 'You didn't really act like a corporation, so we can come after you personally,'" says Kaptzan. A corporation must do a decent amount of documentation, counseling, and legwork to defend itself from such an accusation. One reason that small business owners choose LLCs is that failing to maintain your business' legal status through proper management can expose you to personal liability after all. For this reason, an LLC's ease of upkeep is a major point in its favor. The short answer is yes: “Inc." in a company name signifies that a business is a legal entity called a corporation or an incorporated business. "Inc." is an abbreviation of "incorporated." Corporations and limited liability companies are simply two different options for how a company wants to set itself up; as such, neither one is objectively better than the other. But one will likely be a better fit for your company.

It is not necessary to become an "Inc." to get this benefit, however. You can also become an "LLC," which stands for limited liability company. This status also gives you the same level of personal liability protection, typically with less administration involved. Headline performance can mask the true characteristics of a fund. Without fully understanding how a fund is managed, you may inadvertently become exposed to an undesirable level of risk to your capital. Some funds carry a dilution levy which reduces the number of units realised on any initial investment as an initial charge. If this fund carries such a levy it should be detailed in the Key Investor Information Document (KIID), which we must provide and you should read before investing. It could be that you need to be more tax-advantageous because you're making a lot," says Kaptzan. “Just by changing a corporation's structure, you can potentially save a lot of money." In some cases the ongoing savings are provided by our loyalty bonus. Loyalty bonuses are tax-free in an ISA or SIPP. However, they may be The views and opinions expressed herein, which are subject to change without notice, are those of the issuer companies at the time of publication. They are subject to change and should not be interpreted as investment advice which AllianzGI is not authorised to give.

These are the overall costs in percentage terms, based on an initial investment amount of assuming a growth rate Allianz Global Investors represents products and services of Allianz Global Investors UK Limited, www.allianzglobalinvestors.co.uk. Allianz Global Investors UK Limited is an investment company incorporated in the United Kingdom, with its registered office at 199 Bishopsgate, London, EC2M 3TY.

These are the annual costs based on an initial investment amount of assuming a net zero growth rate And it's important to set your company up correctly, as it may be difficult to unwind mistakes later. You can add 'Inc.' nowThese are the overall costs in monetary value, based on an initial investment amount of assuming a growth rate For information on any specific risks associated with our funds and products please see our Key Investor Information Documents (KIIDs) and Supplementary Information Documents (SIDs).