What is one significant advantage of forming a corporation?

One significant advantage of forming a corporation is the concept of unlimited life for the business entity. This means that a corporation continues to exist independently of the changes in ownership or the lives of its owners (shareholders). As a legal entity, a corporation can maintain its operations even if shareholders sell their shares, pass away, or otherwise leave the company. This continuity makes it easier to plan for long-term growth, attract investment, and secure loans, as lenders and investors view it as a more stable investment compared to sole proprietorships or partnerships, which may dissolve upon the death or withdrawal of an owner.

The other aspects are less favorable by comparison and do not provide the same level of advantage. For instance, unlimited liability presents a risk to owners, as their personal assets could be at stake in the event of business debts. The notion of keeping all profits without taxation is misleading, as corporations are subject to corporate taxation. Lastly, forming a corporation tends to be more complex than setting up simpler business structures like sole proprietorships or partnerships, which do not require as extensive regulatory compliance.