Advantage of a Corporation over a Sole Proprietor or Individual
Transferrability of Ownership Interest
The issuance of shares creates a kind of currency in with value based on the assets owned by the corporation or the financial performance of the corporation. Shares facilitate transferability of ownership. This enhances the marketability of the entity and allows for an exit strategy for the owners. Exit strategy is also known as succession planning.
A corporation shields its owners from personal liability for the debt of the corporation. It is important to understand protection is only from corporate debts and not personal debts of the owner.
- Mark W. Bidwell