Corporate form of business

Small business owners have a variety of options when establishing the legal structure. One option is to structure as a corporation. A corporation is a business recognized by the state as a legal entity separate from its owners (also known as shareholders). A corporation can be owned by individuals and/or entities, and ownership is easily transferable via the buying and selling of stock. The corporate form of organization offers several advantages, including limited liability for shareholders, greater access to financial resources, specialized management, and continuity. Although there are several reasons why incorporating can be advantageous to your business, there are a few disadvantages to be aware of as well. These disadvantages include: lengthy application process; double taxation; expensive; and rigid formalities, protocols and structure.