Analyze the advantages and disadvantages of in corporating a Essay

Analyze the advantages and disadvantages of in corporating a business., and Concept of Limited Liability - Essay Example The reason that corporations are able to offer limited liability is because a corporation is considered a separate legal entity (Weygand & Kieso & Kimmel, 2002). Choosing the corporation over other types of business structures has other advantages. The corporation is the best business structure for entrepreneurs that are looking to raise capital. The way that the corporation allows its owners to raise large sums of capital in shorts amounts of time is through the sale of common stocks. In order for a corporation to sell common stocks it must become a public corporation registered in the Securities and Exchange Commission (SEC). Once a corporation becomes public its common stocks become a very liquid asset that is traded in open markets such as the New York Stock Exchange (NYSE) or in the over the counter market known as NASDAQ. Choosing the corporate form can also help managers obtain better benefits from governmental institutions in the form of incentives. One of the main disadvanta ges of the corporate form is double taxation. References Allbusiness.com (2011). Advantages and Disadvantages of Owning a Corporation. Retrieved June 28, 2011 from http://www.allbusiness.com/business-planning/business-structures-corporations/686-1.html Weygandt, J., Kieso, D., Kimmel (2002). Accounting Principles (6th ed.).