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Corporation v - expenditures that you would experience as a...

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Corporation v. S-Corporation According to Business Law 4 th Ed. a corporation is a legal entity that comes into existence when the state issues the corporate charter. What this means is that a corporation is a legal person separate from its owners meaning the owners/shareholders can transfer their shares of stocks without affecting the continuity of the business organization. Basically it is a taxable entity paying a tax on its net profits. There are several advantages of having your business incorporated. It is easier to raise capital by having multiple investors, there are tax provisions that are favorable to corporations, ownership can be divided into many separate and unequal shares, investors have limited liability, and the list goes on. The disadvantages would be the cost of forming and maintaining the corporate form with its strict formal procedures, some of the
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Unformatted text preview: expenditures that you would experience as a corporation like franchise taxes, license fees, are assessed against corporation but not on partnerships, the double taxation of corporate income and the frequently higher rates they experience. There is also the requirement that the corporation must be qualified to do business in all the states where it is conducting intrastate business, as well as being subject to more regulations by government at all levels than are other forms. An S Corporation is similar to corporate form with its advantages without the double taxation, it is somewhat treated like a partnership. It is limited to the number of shareholders that it is allowed to have as well as the many technical rules that it has to follow....
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