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Personal liability protection
Any creditors who come knocking or lawsuits filed against your business can’t affect you personally. You can rest assured that no
matter what happens in the business, your family’s assets are safe.
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Flexible tax returns
Corporations are automatically taxed as Corporations, however you can elect S-Corporation status and choose to take advantage of
pass-through taxation for your business.
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Flexible management
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Hundreds of years of case law
While LLCs and other entity types remain relatively new and unproved in most states, Corporations have been around for hundreds
of years and offer relatively few surprises when they are challenged in court.
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No ownership restrictions
You can have as many owners as you wish. They can be foreigners or even other entities!
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Free transference of ownership
You can transfer your shares (in the form of “stock”) as often as you wish. Corporations offer the most flexibility when it
comes to transferring shares. If you ever wondered why so many public companies are corporations, this is why!
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Unlimited life-span
While other entities such as LLCs and limited partnerships have limited life spans, corporations automatically exist in
perpetuity until they are dissolved. This is completely independent of the life span of the corporation’s initial owners.
If you’re looking to build a legacy, a corporation may be your best bet!
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You can pay yourself
Corporations allow the managing owners to pay themselves tax-deductible paychecks like all other employees. This is a great way
to avoid the self-employment tax that you would be subject to under other entity types. You can also offer yourself
tax-deductible fringe benefits such as direct reimbursement of medical expenses. Since these aren’t considered taxable income to
the employee, these fringe benefits are essentially tax-free.
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