The major reason why individuals choose to incorporate their business is to protect their personal assets, such as a home, car or family savings. In the event of a lawsuit, or if your business should fail, your personal assets cannot generally be touched. In a sole proprietorship or partnership, the individual or partners are personally liable for all business debts. However, it is never too late to get the additional “limited liability” protection that Corporations and Limited Liability Companies enjoy. Simply incorporate your existing business and the protection is automatic.

Corporations and LLCs can take advantage of tax savings options that are not available to sole proprietorships or partnerships. For example, corporations can establish pension, profit-sharing and stock ownership plans, which can lower the corporation's taxable income. Medical, life and disability insurance premiums are also completely tax deductible for corporations. In addition, a corporation can own shares of stock in another corporation and receive 80 percent of the dividends tax-free.

Corporations can raise capital by issuing stock,bonds or other securities.

Corporations and LLCs are the most enduring form of business structure. If a corporation owner dies, their portion of the business can be transferred quickly without interruption of the corporation's operations.

Estate and family planning is simplified since shares of a corporation can be easily distributed to family members.

Corporations and LLCs often experience a greater ease in doing business. Many stores and banks favor corporate accounts and offer discounts.