Incorporeal entities in buddhism

I don't know anything in depth about Buddhism but as I figure there are three possibilities in life at it's end, either: 1. the soul is released from the physical world and returns to where it originated from; 2. the soul remains in the physical world and is then passed on and contained within another living entity; or 3. the soul remains in the physical world and is not contained within any physical body. The latter I believe I would not favour. If I am correct about my deduction then the latter entity would be incorporeal. Buddhism as much as I know is based upon transference of souls to other living entities so how does it deal with the possible existence of incorporeal entities or does it refute the idea? There is one possibility at the expense of the humanity of things there could be no soul god forbid.