Corporations are formed by a group of people who enter into the business to generate profits. It is created by the promoters who also own shares of the corporation. The corporation has a separate legal identity from its owners and promoters. It may enter into contracts, sue and get sued, purchase and own assets, pay taxes, and borrow capital as debt or raise equity in their own name.
The main advantages are as follows:
The corporation is a legal entity that has a distinct presence and is separate from the owners.
The advantages of a corporation are as follows: