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Business Law
A corporation type of business entity would protect the business from lawsuits because one
of its advantages is that it has reduced liability, meaning that if someone sues the business, their
capacity to take assets is limited to the business and not personal assets. They also function as a
separate legal entity in that the business is legally protected separately from the owner, which can
have several advantages in case the owner is sued and the business remains safe. Tax advantages
also ensure that the owner can split dividends and salaries to keep all shareholders happy. The
disadvantages of corporations however include strict government regulation, most expensive
entity, and issues of double taxation in that the individual and the business pay taxes separately.
A limited liability corporation (LLC) is also efficient because it protects pe...