Business partners Melinda and Joseph are discussing which legal structure to choose for their business. They are leaning toward creating a corporation. What is one advantage of a corporation for these partners?
(1 point)
Responses
They would have lower setup costs.
They would have lower setup costs.
They would follow fewer government regulations.
They would follow fewer government regulations.
They would have protection from personal liability.
They would have protection from personal liability.
They could set the business up without assistance from a lawyer.
1 answer
One advantage of a corporation for Melinda and Joseph is:
They would have protection from personal liability.
This means that the personal assets of the owners (shareholders) are generally protected from the debts and liabilities of the corporation, which is a significant benefit of incorporating.
