A corporation has advantages in raising capital because of greater access to investors. Corporations are difficult and expensive to set up and dismantle. There are stricter legal rules than for other business structures. Power is limited by the articles of incorporation and bylaws, and a vote of the shareholders may be required for various decisions. As a separate legal entity, a corporation must maintain its own set of accounting records and file its own income tax returns.
Corporate shareholders are subject to a form of double taxation.
This is a special problem for small corporations controlled by their owners. Both the IRS and New York State allow corporations with under 35 shareholders to elect to be a Subchapter S Corporation, treated as a partnership for tax purposes. This avoids the double taxation by the state and federal governments. Whether or not to make a Subchapter S election is a matter to be discussed with a tax advisor. If you want to go ahead, use IRS Form 2553 and New York State Form CT-6 .