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To have limited liability
This ensures that the liability of the members of the incorporated organization have limited liability. In case the incorporation is dissolved they are only liable to contribute towards debt payment only up to the amount that they are owed in their shares. no member of the company loses personal property as a result. this is a risk control measure that the members undertake to have control over their own personal assets.
Additionally, by incorporating the organization the management will be forced by the state law to conform to standard accounting practices of data entry and reporting. This will act as a control measure on the management to ensure that they conform to Generally Accepted Accounting Practices (GAAPs) and face regular annual audits.
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