what are the benefits of incorporating a business?

Answer 1

ADVANTAGES OF THE CORPORATION

* Limitations of the stockholder's liability to a fixed amount of investment. However, do not confuse corporate liability with appropriate liability insurance considerations.
* Ownership is readily transferable.
* Separate legal existence.
* Stability and relative permanence of existence. In the case of illness, death, or other cause for loss of a principal officer or owner, the corporation continues to exist and do business.
* Relative ease of securing capital in large amounts and from many investors. Capital may be acquired through the issuance of various stocks and long term bonds. There is relative ease in securing long term financing from lending institutions by taking advantage of corporate assets and often personal assets of stockholders and principals of guarantors.
* Delegated authroity. Centralized control is secured when owners delegate authority to hired managers, although they are often one and the same.
* The ability of the corporation to draw on the expertise and skills of more than one individual.

You can read more at the link, including the disadvantages.

Answer 2

Liability is transferred to the corporation instead of the individual. This protects the individual from losing everything in the case of bankruptcy or a lawsuit. It does NOT protect the individual if employee payroll taxes are not remitted to the IRS.