There is no other business structure with as many benefits as the corporation. These are some of the advantages you can gain by incorporating your business:

---------------------------------LIMITED LIABILITY---------------------------------

A corporation is a business entity separate from its owner(s). Therefore, if your business is incorporated, all of your personal assets are shielded from any business debts or other claims against your business. You do not expose any of your personal holdings and, in most cases, incorporation will allow only your capital investment in the business to be seized in the event of a judgment against your business. This is one of the most popular and attractive aspects of incorporation.

----------------------------------TAX ADVANTAGES---------------------------------

Of course, tax breaks are very enticing as well, and incorporating can give them to you. In a corporation, health insurance, life insurance, travel and entertainment expenses often can be 100% tax deductible. Also, corporate tax rates are usually lower than individual rates. In addition, retirement plans, profit sharing and stock-option plans can be established in corporations in order to lower taxable income.

----------------------------EASE IN RAISING CAPITAL----------------------------

The above benefits will be an advantage to you, but you may also find that investors are attracted to them as well. Corporations can raise capital through the sale of stock and most banks and venture capitalists will be more likely to invest in your business if there are advantages for them and if they are not going to be liable for possible damages or lawsuits.

---------------------------PRESTIGE AND CREDIBILITY---------------------------

Image is everything…Well, maybe not, but if your company does not have a professional image, your company does not have a chance. When you incorporate, you send a signal to all that you are serious about your business and its success. Corporations look professional and appear bigger, whether there is one shareholder or 1,000. Investors will be more attracted, customers will be more at ease and competitors will be more nervous.


Unlike other business structures, such as partnerships, the owners of a corporation can be protected from any undesired publicity. Only the officers of a corporation, not its stockholders, are on public record. In a corporation, it is possible to have a business, yet maintain your personal privacy. Anonymity is another feature that may be attractive to potential investors.

-------------------------------PERPETUAL EXISTENCE-------------------------------

A corporation is the most enduring of all business structures because it is a separate entity from its owners. It can outlive its original ownership, whereas other structures, such as partnerships or proprietorships, will likely end or become mired in legal entanglements in the event of an owner's or partner's death. This can be a very important consideration in the area of estate planning.

-----------------------------TRANSFER OF OWNERSHIP------------------------------

Because ownership is determined through stock holdings only, business does not have to be disrupted to change ownership in a corporation. This can be accomplished easily and effectively through the sale and transfer of stock.

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