Shareholders can only be held responsible for their investment in the company's stock. Companies can increase their financing through the sale of shares. A company can deduct the cost of the services it offers. A disadvantage is that the process of forming a corporation requires more time and financing than other forms of organization. Companies are supervised by federal, state and local agencies and therefore may have additional paperwork to complete. Corporations may have higher taxes and dividends paid to shareholders are not deductible and income may be double.