Many of the most significant advantages of forming a corporation conveniently relate to the most critical aspects of running a business.
As previously mentioned, corporations provide reduced liability for owners. Because the company is a separate entity, creditors don't have a claim to the shareholders' personal assets. Instead, they only have a claim to assets held in the company's name. This makes doing business significantly less risky for shareholders than if the company was a partnership or sole proprietorship, where the shareholders are liable to creditors.
Transferring shares (or stock) is another advantage because it essentially allows a company's ownership to change or evolve without interrupting business activities. For example, if a member of a partnership leaves, they likely need to submit a ProductLink code="GPRTWT" text="Notice of Withdrawal from Partnership", and the business may even dissolve. However, if a shareholder wishes to exit their involvement with a corporation, they can transfer or sell their shares to another shareholder or new buyer, and business will likely continue as usual (depending on the corporation's size).
Publicly selling stocks is an easy way to gain capital, and it isn't an option available to other entity types. This can grow a business and may even save it from going under in desperate times.
A corporation's structure also increases the company's chances to head in a direction reflective of the ownership group's views and goals. Because the shareholders elect the board of directors, and the directors oversee the company's management, those elected directors are responsive to ownership and can make decisions that align with their desires.