Originally Posted by slowandsteady
Incorporating is just a way to sever the financial connection to the owners. Most businesses are started as a sole proprietorship or a partnership. This means that the owner's are legally responsible for any losses or profits. The taxes are filed under the individuals.
A corporation has stocks, but they may only be owned by one or two people or thousands. One must keep more records(meeting minutes for example) and taxes are filed as a corporation. There is usually a negative financial aspect to filing taxes as a corporation.
A limited liability company is the happy medium with the owners able to simplify their taxes, but removes some responsibility for losses. An LLC is also temporary. A sole proprietorship, partnership, or a corporation can be permanent.
A couple of your statements aren't true or need clarification.
Sole proprietorships file as an attachment (Schedule C) to the 1040, however partnerships have a separate tax return - Form 1065.
The shield provided by incorporating isn't foolproof. In many cases, the tax courts have ruled that corporation owners were liable for damages when the damages are caused by gross negligence or misconduct. This is likely to happen if the owners are also company officers.
I'm pretty sure that LLCs aren't temporary.