ADVANTAGES AND DISADVANTAGES OF INCORPORATION?

WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF
INCORPORATION?

ADVANTAGES
• A corporation is treated by law as
an individual rather than a group of
individuals.
• Protection from individual liability
from group's debts, negligence, etc
• Can own property in corporation's
name.
• Can enter into contracts, borrow
money, etc. in corporation's name.
• Must be incorporated in the State to
qualify and maintain legal status of
corporation.
• More likely to qualify for tax-
exemption.
• More likely to qualify for grants
and other funds.

DISADVANTAGES
• Increased government regulations
and reporting requirements.
• Increased paperwork and face some
costs necessary to operate the
organization.
• More formal procedures required.