Many banks and businesses will not accept a corporate signature without a personal guarantee by one or more of the officers. The personal guarantee pledges the individual's assets to cover the debt if the corporation is unable to do so. The corporation does screen the owners' personal property from some types of liability. The corporation generally has greater borrowing power than sole proprietorships and partnerships. There are legal and other fees for incorporation, and corporations are required to keep business records.
Owners have limited control over the business because the corporate board runs it.
In smaller corporations, the owners often sit on the board. An open or general corporation provides stock that the general public can easily purchase. The general corporation can have from one shareholder to more than 30. The shareholders owning more than 50 percent of the shares control corporate policy and activities through their presence or representation, through proxies, or by being on the board of directors. Non-profit organizations do not issue stock.