A longer answer would be the legal and tax benefits of a corporation once the amount of wealth has reached certain levels. Partners in a partnership do not have the legal protection shareholders in a corporation do. A shareholder, for the most part, cannot have suit brought against them directly, and can onyl lose the capital contributed from the purchase of the stock shares. A partner can be infinately personally liable, and so when contracts and leases reach millions of dollars (as are common with large corporations), the members prefer that barrier in case of litigation.

(now in easier ot understand terms)

With a partnership between John and Jill, they can only use their personal money to build the company. ABC Corporation can use a bunch of other people’s money, allowing for a much larger company in most cases. If John and Jill reach a level of business that starts to deal with some very large numbers, they will commonly change their company to John and Jill Corporation to help protect themselves from being in trouble if the company starts to struggle and to help keep the amount they must pay to the government down.

Hope this helps.