A Corporation is the most common corporate structure. The corporation is a separate legal entity that is owned by stockholders. A general corporation may have an unlimited number of stockholders that, due to the separate legal nature of the corporation, are protected from the creditors of the business. A stockholder's personal liability is usually limited to the amount of investment in the corporation and no more.

Advantages

• Owners' personal assets are protected from business debt and liability
• Corporations have unlimited life extending beyond the illness or death of the owners
• Tax free benefits such as insurance, travel, and retirement plan deductions
• Transfer of ownership facilitated by sale of stock
• Change of ownership need not affect management
• Easier to raise capital through sale of stocks and bonds

Disadvantages

• More expensive to form than proprietorship or partnerships
• More legal formality
• More state and federal rules and regulations