_ Corporation: An 'artifical person' created by law. Stockholders own the business. Incorporation has made capitalism the dominant economic system. Organizing as a corporation makes it possible to raise large amounts of capital and protect one's personal assests should the business have a problem.

There are different types of Corporations.

Since a corporation is a separate organization, and you are just an employee, if the corporate veil holds, all any creditor can collect will be corporate owned assets, not your own personally owned assets.

Advantages

1. Limits liability.
2. Easy transfer of ownership.
3. Easier to raise capital
4. Perpetual life.

Disadvantages

1. Difficult/expensive to form.
2. Lack of secrecy.
3. Government regulation.