The Formation of the Facebook Corporation

On October 28, 2003, Mark Zuckerberg was a sophomore at Harvard University when he created a website called Facemash that was similar to an existing web service called Hot or Not. However, the following semester, in 2004, Zuckerberg began working on new code for a new website to be called Facebook. His friends Eduardo Saverin, Dustin Moskovitz, Andrew McCollum, and Chris Hughes joined Zuckerberg to promote the new social networking site. Membership on the site quickly grew from only students at Harvard College to students at most universities in the United States. In the summer of 2004, Facebook was incorporated. As a corporation, Facebook is an artificial person, a status with legal ramifications for both the corporate entity and its owners.

1. What are the legal implications of Facebook's status as a corporation?
2. How are corporations formed? What factors should a businessperson consider in forming a corporation?