A Corporation (or INC) is a type of business entity that is considered separate and distinct from its owners, and protects them through limited liability. If someone sues the company, the owners are safe.
Nearly all major companies are corporations. Its great advantage is that the owners of a corporation can passively own their ownership percentage of the corporation, known as a “share” or “share in the company”. That means you can own part of a company without getting involved in the day-to-day management of it.
We normally recommend Corporations for companies who expect to look for investors to scale up and go through several rounds of financing; i.e the traditional startup model.