Other than unlimited liability companies, the shareholders of companies have the benefit of limited liability. That means that they are not personally liable if the company is unable to pay its debts. This means that if the partnership is unable to pay its debts, the unpaid creditors can sue the partners, and if only one of them has any money, he or she will be liable, even if the debt was incurred because of the actions of one of the other partners. It may be easier to raise capital for the business if a company structure is used. This is partly because the investors can have the protection of limited liability.
Companies have different tax treatment.
The law provides default rules for companies. This could be a significant advantage for a family run business. For example, consider a business owned and run by a couple with young children. Should both parents die, the business, if in the form of a company, can continue to operate and provide for the welfare of the children. The high fees for listing.