The reason a professional such as a lawyer or doctor would incorporate his/her business is: to protect his/her other assets with limited liability.
A limited liability company or partnership is a sort of legal structure for an organization where a corporate loss is restricted to the money invested in those entities (LLC). In other words, if the company fails, the private assets of the owners and investors are not at risk. It is known as Gesellschaft mit beschränkter Haftung in Germany (GmbH).
One of the main benefits of investing in publicly traded corporations is the limitation of liability. Even if a firm later goes bankrupt and still has financial commitments, a shareholder's culpability is limited to the amount of their investment in the company. This is true even if they are fully involved in the company's growth.
Organizations with limited liability can mitigate the impact of economic losses on their assets.
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