Corporations can also be used to own real estate, automobiles, yachts, or aircraft for further asset and liability protection. And because the corporation continues to exist even after the death of a shareholder, it offers tremendous estate planning advantages. Take a moment. Corporations are entitled by law to many tax deductions that are not available to individuals. Many of the tax benefits that accrue to a corporation can end up greatly benefiting corporate owners.
Corporations have a lower federal tax rate at all levels of income compared with individuals.
The law states that it's the responsibility of each individual to structure their business affairs in such a manner as to minimize the amount of tax payable. There are many proven and effective tax-reduction strategies that can be easily employed through a corporation. Unfortunately, this thinking has resulted in tremendous losses by too many unprepared business owners. In addition, what many sole proprietors fail to realize, is that it doesn't take a catastrophic lawsuit to wipe out everything they own. There are more common business events that can equally affect sole proprietors, leaving their personal assets fully exposed.