What is a Corporation?
A corporation is a legal entity created by a group of individuals, usually for the purpose of carrying on business. The key feature of a corporation is limited liability, which means that the shareholders are not personally responsible for the debts of the corporation.
How to Form a Corporation
The process of forming a corporation varies from jurisdiction to jurisdiction, but generally involves filing articles of incorporation with the relevant government body. Once the corporation is formed, it must comply with various legal requirements, such as holding shareholder meetings and keeping accurate financial records.
What is an example of corporation? A corporation is an entity that is separate and distinct from its owners. A corporation is created by filing articles of incorporation with the state in which it will be doing business. The owners of a corporation are called shareholders. The shareholders elect a board of directors to oversee the affairs of the corporation. The board of directors hires officers to run the day-to-day operations of the corporation.
How do S corps pay taxes? S corporations are subject to corporate income tax, but they are not subject to the double taxation that C corporations are subject to. This is because S corporation shareholders only pay taxes on their share of the corporation's income, rather than on the corporation's income as a whole. S corporations are also subject to state and federal taxes, as well as payroll taxes. Can a corporation be owned by a single person? Yes, a corporation can be owned by a single person. In fact, most corporations are owned by a single person or a small group of people.
What is the purpose of corporation? The purpose of a corporation is to provide limited liability to its shareholders, meaning that the shareholders are not personally liable for the debts and liabilities of the corporation. This limited liability is one of the key advantages of incorporation. Another key advantage is that a corporation can continue to exist even if its shareholders die or leave the company. What do you call the owner of a corporation? The owner of a corporation is called a shareholder.