What Are the Differences Between a Corporation, Partnerships and a Sole Proprietorship?
You may start your business as one of several different types. What Are Some Advantages of Forming A Corporation? The reasons most people incorporate their business: 1. Is to limit their exposure to personal liability and business debts. A corporation protects personal liability for the corporate owners (the shareholders) in most cases. 2. To take advantage of tax benefits, and corporate allowable deductions for expenses such as health insurance, employee benefit plans, negotiating financing, as among other tax benefits. 3. A corporation can exist in perpetuity. What this means is that the business can continue in the same form, after you retire. You can sell the business, as a corporation, or set up a vehicle such as a family trust, to leave it to your children or relatives – which you can do even while you retain of the day to day activities of the corporation. The reason you can do this is because unlike a sole proprietorship, a corporation is owned by the shareholders so therefore
