Benefits of Incorporating a Company

Essay by Anonymous UserUniversity, Bachelor'sA, February 1996

download word file, 2 pages 4.5

The Advantages and Disadvantages of Incorporating a Business

In order to mention all the advantages and disadvantages of incorporating a business, first I should try to explain what a corporation is. In 1819, Chief Justice Marshall of the United States Supreme court said: ' A corporation is an artificial being, invisible, intangible, and existing only in contemplation of the law.' In the Webster's College Dictionary corporation is defined as 'an association of individuals, created by law and having an existence apart from that of its members as well as distinct and inherent powers and liabilities.' A corporation is divided into many units called shares of stock. The owners of the stock are called stockholders or shareholders. One of the advantages of incorporating a business is that because a corporation has a legal existence, shares can be sold at any time without affecting the operations of the corporation. Also, shares can be bought at any time.

