The largest advantage of incorporation is that a corporation is deemed to have its own separate legal identity. The corporation has a legal personality, existence, rights and duties that are distinct from those of the individuals comprising that group who constituted the corporation. Thus, a shareholder will not be liable to the debts and obligations of the corporation, and the corporation is not necessarily liable for the actions of the individual shareholders. Additionally, the tax burdens of the shareholders and the corporation are separate, with corporations generally being taxed at a lower rate than individuals.