Limited Liability of shareholders - shareholders personal assets are separate from the business and cannot be seized to pay for outstanding debts. Flexibility for tax planning - various tax advantages are available to corporations that are not available to partnerships or proprietorships. Tax planning must be undertaken with help of a professional accountant. Corporate management flexibility - the owner or owners can be active in management of the business to any desired degree. Continued Existence of Corporation - Corporation can continue to exist in spite of changes in shareholders.
Ownership is readily transferable.
Draw on expertise and skills of more than one individual. Activities limited by the charter and by-laws. Manipulation - minority shareholders are potentially in a position to be exploited by the decisions of the majority of the company. Expense - it is more expensive to establish and operate a corporation due to the additional documents and forms that are required compared to a proprietorship or partnership. In Alberta, a Registered Nurse is not eligible to become a Professional Corporation.