Pros and cons of having a corporation.. help!?

can someone help explain the pros and cons of having a corporation and how taxation works?

Answer:
You might as well get the words from the horse's mouth.

Go to IRS site, http://www.irs.gov/businesses/small/arti.

Click on all the different business structures to compare the difference.

One major area that isn't covered by IRS is business liability. Liabilities of a Sole Proprietorship and Partnership are passed to the business owners. In the other structures, damages are generally contained inside the business and wouldn't affect owners' personal assets.

For most small business, LLC is the best choice. It is easy to setup with almost no special reporting requirements.

Best wishes.
Pros: limited liability, perpetutity.

Cons: tax rate is higher but corporations are allowed to take many more deductions than individuals. Government reporting.

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