Answer:
The company is treated as a separate tax entity by law.
It is possible to raise large amounts of capital by selling company stock.
Explanation:
A corporation ownership structure is considered a legal person. The law recognizes a corporation as a distinct legal entity with equal business rights like a human being. The corporation has the right to engage in business activities, acquire assets, and enter into commercial contracts. At the end of a period, a corporation is expected to file tax returns.
A corporation has the advantage when it comes to raising capital. It is allowed to offers shares to investors in exchange for capital. Investors turn to shareholders(owners) when they purchase the shares of a corporation.
