Final answer:
The corporate form of business's main disadvantage is the additional taxes it incurs. Corporations offer limited liability and ease of raising capital but come with the burden of strict regulations and a higher tax load compared to other business structures like sole proprietorships and partnerships.
Step-by-step explanation:
The disadvantage of the corporate form of business is primarily associated with additional taxes. A corporation is indeed a legal entity that can raise capital and limit the liability of its shareholders, but it also faces stricter regulations and potentially significant tax burdens.
Corporations can sell shares or bonds to generate revenue, but they must also navigate complex legal and tax landscapes that can deter some business owners due to their complexity and cost. Shareholders typically have limited control over day-to-day operations, and although they can lose no more than their investment, they must still deal with the corporate tax implications of their holdings.
Other forms of business, such as sole proprietorships and partnerships, also have their own sets of disadvantages. For sole proprietorships, it's more challenging to raise capital, and the owner has unlimited liability for the business's debts, which can lead to the loss of personal assets.
Partnerships can provide some operational benefits, but partners are mutually responsible for each other's actions, and the partnership must be reevaluated if a partner leaves or passes away.