Incorporation provides many benefits to business owners. One of the primary benefits is asset protection. As owners of a corporation, shareholders liability is limited to the amount invested or capitalized to organize the corporation. For example, creditors of your corporation must generally satisfy their claims by seizing assets of the corporation rather than the personal assets of the shareholders. In contrast, as a sole proprietor or partner in a general partnership, you are financially responsible for all liabilities of the business, and your personal assets are subject to seizure or lien by creditors.

Those persons desiring to conduct general trading activity, real estate development, or other business ventures, may choose incorporation as an effective investment vehicle for such activity. Incorporation provides the structure to take advantage of generally accepted accounting principles to reduce tax exposure.

Incorporation also provides a method to retain anonymity as a business owner since shareholders of a corporation are not generally publicly registered.

Furthermore, incorporation provides a greater opportunity to raise capital for the business through issuance of stock (certain restrictions apply).

A Corporation also has perpetual life. In a Partnership the business ends if a partner dies, either you windup the business and distribute your partners share of the proceeds to his heirs or you end up with his wife as your new partner.