This section is from the book "Business Finance", by William Henry Lough. Also available from Amazon: Business Finance, A Practical Study of Financial Management in Private Business Concerns.
Yet, the corporation is by no means confined in its usefulness to concerns doing an enormous business. On the contrary, it is becoming every year more and more frequent to organize even small enterprises in this form. The "one-man corporation" or "the close corporation" is no longer an isolated phenomenon. Thousands of men who prefer to have themselves and their estates relieved from possible liabilities due to misfortunes of business, or who wish to organize in such a way that it will be easy to sell interests or gradually to transfer the control, have decided to adopt the corporate form. The expense of so doing is slight, and they feel that it is well worth while.
It is becoming more and more common also to incorporate the estates of deceased persons and to distribute shares in the corporation among the heirs of the estate so that a proper division of interest may be secured without a physical division or forced sale of the property. Small corporations for temporary purposes, also, are not uncommon. An individual may get up a corporation to publish a book or to carry through a piece of speculating in real estate.
Indeed, the question is often raised whether this tendency is not being overdone; whether many enterprises that would be better off as temporary syndicates or as special partnerships, are not unthinkingly being made over into corporations. As regards many individual cases, the question is no doubt well justified. On the whole, however, there can be little question but that the corporation has proved itself useful, sound, and economical, not only for nation-wide and world-wide concerns, but for small and local enterprises as well.