A corporation is a legal entity independent from its owners, the shareholders. It can sue and be sued, and its shareholders are shielded from liability (except possibly in cases of intentional wrongdoing, fraud, etc. – for example: WorldCom, Enron). Corporate profits are taxed, and corporations live on perpetually unless dissolved. Corporations are suited to raising large amounts of capital through many investors.
The first question you should ask yourself when considering incorporation is, “Why am I forming a corporation and not an LLC?” If you cannot articulate an answer, you should educate yourself about LLCs, which have many of the benefits of corporations, without the drawbacks. For example, LLCs are easier to maintain than corporations. If you do not plan to seek the investment of numerous individuals, you should consider an LLC.