Therefore, shareholders can transfer full interest and rights and shares by sale, gift or will. Investors who prefer to invest only temporarily may withdraw or sell their interests, and additional capital may be raised by selling even more shares. Since a corporate existence can last, in theory, forever, death or withdraw of any of its owners is of no moment. The business name may be continued throughout time to avoid loss of goodwill. Long-term financing and services of key employees are more easily obtained by a corporation because of its perpetual existence.
Shareholders also enjoy limited liability for the debts of the corporation.
Thus, enabling them to shield personal and other business interest from liabilities. This protects owners if businesses are expected to operate at a loss for some amount of time, or if one wrong judgment results in bankruptcy. The many advantages of operating a business in the corporate form carry with them some difficulties. Initially, the organization and operation of a corporation is complex and expensive in comparison to other business entities. Corporations are subject to more government regulatory and reporting requirements, and qualification to conduct business in other states is more complex and expensive.