disadvantage of incorporation

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could anyone please explain what is disadvantage of incorporation ?
Replies (7)
The main disadvantage of incorporating as a companies is the compliance burden and huge penalties for non compliance.
thank u sir
but I am preparing for LL.M entrance exam so this question has 4 options those are as follows
1) Limited liability
2) perpetual succession
3) Lifting the corporate veil
4) ability to sue and be sued

so suggest me correct option
It is very difficult to give a straight forward answer because it depends on situation. Certainly perpetual succession is not an advantage but it is just a feature of a company. Limited liability is an advantage from the investor point of view, but investor includes directors also. If they commit any fraud, the court can lift the corporate veil. Ability to be sued and to sue is one of the characteristic of the company. Every above situation is completely hypothetical and a straight answer may not be possible. Further I cannot see any of the above as a disadvantage in any sense.
In my opinion the person who asked the question lacked intense thought.
may be
thanks your amazing explanation sir


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