Corporations typically want to do business or collaborate with other corporations. Corporations provide owners and directors protection from personal liability. A corporation exists as a separate structure. Shareholders are not personally liable for corporate debt. Corporations are the most enduring legal entity and do not terminate on the death of the founder, owner or partner.
Corporations offer anonymity to the owners.
If an owner does not want her or his name known, incorporation is a good choice. Corporations can offer tax-deductible benefits, i.e., health and life insurance, travel and entertainment deductions. Tax options are available by setting up pensions and profit sharing. Investors are more attracted to investing in corporations and capital is more easily raised through the sale of stock or other equity interests. Today's Top7Business article was submitted by Elizabeth Fenton and Renee Gillombardo.