It can buy, sell, posses and own things. It can get into contracts with individuals and other corporations. Unlike an individual, a corporation has perpetual life until it is closed down (dissolved). As a result, directors and shareholders can come and go, if they wish, and the corporation can still continue.

In a corporation, the liability of the directors and shareholders are limited, unless a director or shareholder personally undertakes personal responsibility and provide personal guaranty to a creditor or a contracting party.

There are many benefits available to corporations that are not available to individuals. A corporation has more image credibility. It gives the impression of stability and endurance. Generally, and most cases, corporations pay far less taxes than individuals.

There may be some disadvantages to it as well. For example, some people argue that there are more record-keeping requirements if a business incorporated. This, in my opinion, can be an advantage. The better your recordkeeping process, the easy it is to manage your business affairs. Also, in the case you are ever audited by the government, you would be glad you had a good record keeping system and process. You will be able to give better answers to questions and backup what you had claimed on your taxes.

Off course, it is a little more expensive to incorporate, but this is a one time expense. Accounting and bookkeeping is also an issue with some people. If your business is incorporated you would have to file your personal income tax separate and your business income tax separate. Again, part of running any successful business is keeping your accounts in good shape and knowing your income and expenses. So, separating personal tax filing from one’s business, is considered a far better choice by most successful entrepreneurs.