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Advantages of Forming a Corporation

Advantages of Forming a Corporation


An important advantage of forming a Corporation is the protection of owners from personal liability for business debts and claims. Corporate assets are used to pay off business debts not personal assets; shareholders stand to lose only the money that they've invested in the corporation.


Conversely, sole proprietorships and general partnerships provide no limited liability protection for their owners. This makes owners of sole proprietorships and partnerships personally liable for all business-related debts, claims and obligations.

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