ENTREPRENEURSHIP

Detailed explanation-1: -There are several advantages to becoming a corporation, including the limited personal liability, easy transfer of ownership, business continuity, better access to capital and (depending on the corporation structure) occasional tax benefits.

Detailed explanation-2: -An advantage of the corporate form of business when compared to sole proprietorships and partnerships is the limited liability of owners. A master limited partnership (MLP) is taxed like a partnership.

Detailed explanation-3: -The advantage of a Corporation is liability protection. The owners are protected from the debts and liabilities of the business. The disadvantage of a Sole Proprietorship is unlimited liability. This means the owner is completely responsible for all debts and liabilities of the business.

Detailed explanation-4: -As a result, the corporation offers some unique advantages. These include (1) limited liability: owners are not personally responsible for the debts of the business, (2) the ability to raise capital by selling shares of stock, and (3) easy transfer of ownership from one individual to another.

Detailed explanation-5: -A corporation, sometimes called a C corp, is a legal entity that’s separate from its owners. Corporations can make a profit, be taxed, and can be held legally liable. Corporations offer the strongest protection to its owners from personal liability, but the cost to form a corporation is higher than other structures.