Incorporating your business allows a greater amount of strategies to further reduce your taxes. Your business may also necessitate the creation of a Holding company to protect profits gained by company's operations. How you incorporate and structure your company determines which tax practices you can engage which, if not done correctly, could cost you money. You need to ensure that the most favorable business structure is utilized which extends to ownership percentage and class of shares issued. Perhaps you have one or more business partners; this brings about the need to create a shareholders' agreement identifying the definition of mutual obligations, privileges, protection and rights of each party and also serves to provide a method to re-purchase shares should a partner leave the company.