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Incorporating your business means that:
Your personal assets are protected in case the company has to be liquidated or dissolved. This usually happens when the company is unable to meet its financial commitments and its assets have to be sold to pay off its debts.
You are personally protected from bankruptcy arising from business losses. This makes it easier to recover from any business failures and to try again. You may however legally be disqualified from starting a limited company if there is evidence of criminal negligence.
There are tax advantages in the form of lower tax rates and deductible expenses for limited companies
Established business are more inclined to do business with another limited businesses as it is perceived as less risky than working with individuals
Incorporation offers improved credibility and perception by the public
It is easier to raise finance from investors by offering equity in the form of shares
It is easier to sell or transfer ownership of an incorporated business
Incorporation creates a legacy for posterity which will potentially attract inheritance tax reliefs unavailable to unincorporated businesses
Incorporation enables you to protect a business name until you are ready to trade with it. Companies can be registered as dormant if there is no immediate need to trade with them.
Loan finance is easier from banks and other financial institutions.