| A quick glance at the phone book will reveal to any | | | | the owner of the corporation is completely separate |
| interested party that there are a number of business | | | | from the corporation itself. They are separate legal |
| forms that any business can be given when it is | | | | bodies. This is the biggest advantage of a corporation |
| formed. Each of these forms has a variety of | | | | and all of the other benefits flow from this one fact. |
| advantages and disadvantages. In many situations, the | | | | Because the owners of a corporation are separate |
| form given to a business is based on the wishes and | | | | from the corporation itself, the liability of the individual |
| requirements of the founders. In other scenarios, the | | | | owners is severely limited. It is generally not possible to |
| only thing taken into account is the liability of the owner | | | | hold the shareholders, basically the owners, of a |
| and the tax structure. | | | | business liable for their actions if the business has |
| First of all, it is not necessary to have a large business | | | | opted for a corporate structure. Technically, |
| to make it into a corporation. The majority of new | | | | shareholders are little more than investors in the |
| corporations formed are generally small businesses | | | | business; they have very little responsibility or liability for |
| owned by one or two people. It is possible for a | | | | the actions of the corporation itself. |
| business based out of a spare room in a house can | | | | In addition to being held not liable for the corporation's |
| be considered a corporation if it is incorporated and | | | | actions, shareholders or owners are not responsible |
| structured properly. | | | | for debts. Creditors cannot go after the assets of a |
| Corporations in general are nonhuman entities. They | | | | shareholder in the event that the corporation defaults |
| are allowed to exist in the United States because of | | | | on a loan or does something that requires a creditor to |
| the various acts that have been passed. These acts | | | | come after it. This is a huge benefit in the event that |
| allow corporations to exist as well as set out the rules | | | | the small business is a start up. |
| for forming them, the rules for operation, and a variety | | | | The corporate business structure includes a number of |
| of other rules that all affect how a corporation is run. | | | | tax benefits as well. First, a corporation can claim |
| The greatest benefit of the business structure known | | | | deductions for all of the health insurance purchased for |
| as a corporation is that it exists entirely separately | | | | the shareholders' benefit. Also, life insurance can be |
| from the existence of the owners. So this means that | | | | deducted if it is purchased for the shareholders as well. |