What are the advantages of carrying on business through a corporation?
Most people incorporate to limit their personal exposure to business debts and liabilities. In the absence of personal guarantees or other personal involvement, corporate indebtedness will not extend to investors personally. This is to be contrasted with sole proprietorship and partnerships where business debts can be satisfied out of both business assets and other personal assets. Other reasons for incorporating include provision of a framework within which investors can operate, tax and business advantages, and, to a degree, a more commanding presence.
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