The advantages and disadvantages of incorporating a business To discuss all the pros and cons of incorporating a business, should first try to explain what a corporation. In 1819, Justice Marshall of the U.S. Supreme Court, said: "A society is an artificial being, invisible, intangible, and existing only in contemplation of law." In college corporation Webster Dictionary defines as "an association of persons created by law and have an existence separate from its members as well as different inherent powers and liabilities". A company is divided into several units called shares. The owners of the shares are called shareholders or stockholders. One of the advantages of incorporating a business is that because a company has a legal existence, the shares can be sold at any time without affecting the operations of the corporation. In addition, shares may be purchased at any time. Another great advantage of incorporating a business is that corporation have limited liability. This means that the company is responsible
This is the end of the preview.
access the rest of the document.