Corporate Formation and Financing

One of the key advantages of corporations is the

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One of the key advantages of corporations is the limited liability of owners  (shareholders).  In certain situations, the corporate “veil” of limited liability can be pierced, holding  the shareholders personally liable.  Taxes Corporate Earnings and Taxation. Corporate profits can either be kept as  retained earnings  or passed on to the  shareholders as  dividends. Corporate Taxation : corporate taxes can be taxes twice, first to the corporation,  then to the shareholders via dividends.  Holding Companies (parent company):  company whose business activity  consists of holding shares in another company. Typically holding company is established off-shore (Cayman Islands, Hong Kong,  etc). Torts
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Torts and Criminal Acts . Corporation is liable for the torts committed by its agents or officers within the  course and scope of their employment under the doctrine of  respondeat superior . Corporation can be liable for criminal acts, but only fined.  Responsible officers  may go to prison.  What are the sources of Corporate Powers? Express Powers . Found in the corporation’s articles of incorporation, the laws of the state of  incorporation, and in the state and federal corporations.
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