Corporation A corporation differs from the other legal forms of business in that the law regards it as an artificial being possessing the same rights and responsibilities as a person. This means that, unlike sole proprietorships or partnerships, it has an existence separate from its owners. As a result, the corporation offers some unique advantages. Advantages Disadvantages Stockholders have limited liability. Corporations can raise the most investment capital.
Corporations have unlimited life.
Ownership is easily transferable. Corporations utilize specialists. Corporations are taxed twice. Corporations must pay capital stock tax. Starting a corporation is expensive.