Question

What are the relevant advantages and disadvantages of incorporation?

Answer 1

Incorporating a business has many tax and legal ramifications for the owners of the business. Because a corporation acts as a statutory creation, paperwork must be filed with the state to incorporate a business. A business may be incorporated by an unlimited number of shareholders, or a single shareholder. As explained on the All Business website, the existence of an incorporated business is separate from the shareholders of the company.