A corporation can be taxed, sued, and it can enter into contractual agreements. A corporation sells shares to its owners who elect a board of directors to oversee the company. A corporation does not dissolve when it changes ownership, it has a life of its own. Generally, shareholders can not be held liable for a corporation or its debts, up to their investment in the company. A corporation's officers can be held liable for their failure to perform an action, such as paying taxes.
Corporations can raise money by selling stock.
A corporation can also deduct the cost of benefits for its officers and employees. Additionally, a corporation under certain circumstances can elect to become a S Corporation, with similiar taxation to a partnership. This election allows shareholders to treat earnings and profits as distributions and have them pass directly to their personal tax returns. Disadvantages of a corporation include double taxation for some owners. A corporation is taxed at the corporate level and then again at the personal level for any dividends it pays out.