Pros
Tax benefits: Can increase the company's and its shareholders' profitability and financial efficiency Limited liability: Shareholders and directors are protected from the company's liabilities, so their personal assets are safe Brand recognition: Can help a new business avoid failure due to lack of brand awareness
Cons
ompliance and regulation: Companies are subject to many regulations and compliance requirements Double taxation: Corporation and shareholder earnings are taxed, and corporate taxes may be paid at a different time than other forms of business Reporting requirements: Can be complex Financial affairs are public: The company's financial affairs are public Directors may be held personally liable: If directors don't meet their legal obligations, they may be held personally liable for the company's debts