Incorporating is the creation of a separate legal entity and allows owners to separate and protect their personal assets from business creditors
Tax planning/flexibility: Accountants will recommend incorporation to obtain tax advantages once revenues reach a certain point. Profits may also be retained in the business with less tax consequences than would apply to a sole proprietorship/partnership. Long term, as the corporation grows, serveral tax planning options are available which are financially more efficient than the options available to sole proprietorships.
Perpetual existence: Corporations continue to exist even if ownership or management changes. Sole proprietorships just cease trading if an owner dies or becomes sick.