Questions & Answers / What are the advantages of a corporation?

What are the advantages of a corporation?

Typically shareholders, directors, and officers of a corporation are not responsible for the debts and liabilities of the corporation. The corporation is a legal entity separate from its owner(s). If the corporation suffers losses, the corporation itself must bear those losses to the extent of its own resources. Such losses would not affect the personal assets of the individual shareholders, provided that the corporation maintained certain corporate formalities, explained further below.