Incorporation Overview

A corporation is a separate and distinct legal entity formed under state law, and is owned by shareholders. A corporation is managed by a board of directors, who are responsible for making major business decisions and overseeing the general affairs of the corporation. Today, corporations have become the standard for many business entities, especially for those looking to take on investors. Some of the advantages to forming a corporation are as follows.

Shareholders (owners) are not typically held liable for the debts of the corporation
Can help you reduce your taxes
Can choose to be taxed as an S-Corporation (income is passed through to owners/Shareholders) or can elect to be taxed as a C-Corporation to take advantage of lower income tax brackets through income shifting
Can provide corporate retirement and medical plans
Easier to raise capital through the sale of stock in the corporation