Pros and Cons of Corporations
Pros
•Still fairly to cheap and easy to form and maintain, though potentially more expensive than LLCs.
•Clearly defined limited liability for owner.
•May have perceived value for marketing purposes.
•Can have tax advantages at the state level.
Cons
•Compared to LLCs, more paperwork to form.
•More formal governance requirements.
•Can have higher tax costs.
Another common business form for small businesses is the corporation. The idea of the corporation has a long history, extending back to before the colonial era. In the United States, corporate statutes granting business owners limited liability first came on the scene in the final years of the 19th century. The proliferation of corporations ...
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