by 
The Curious Bag
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People who feel vulnerable operating a business under their own individual legal status may enjoy the added benefits of incorporating for the legal, financial and tax protections this status offers.
Asset Protection
Business owners who incorporate can separate their personal assets from those of the business, protecting them from liquidations or lawsuits, according to the Active Filings website.
Tax Benefits
Incorporation allows business owners to take advantage of numerous tax advantages, the Active Filing website explains, by enabling the business owner to interact with the business as a separate entity.
Financial Benefits
The Active Filings website states that incorporation can aid in raising money, through selling stock in the business or through extra credibility when working with lenders.
Privacy Benefits
The "anonymous" quality of a corporation helps to ensure the business owner's privacy and ability to conduct confidential transactions, according to Active Filings.
Perpetuity
Active filings notes that a corporation, as an independent legal and financial entity, can withstand any degree of officer turnover ownership transitions, as opposed to lesser legal protections where the death of an owner or partner could kill the business entirely.
Source:
Active Filings: 7 Advantages to Incorporating
Home Business Center: How to Incorporate, Copyright, File a Trademark & Get a Business License 1-2-3
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