Corporations FAQ
What corporations are, how they work, and whether or not you should incorporate.
» What is a corporation?
What is "limited liability" and why is it important?
How are corporations different from partnerships, sole proprietorships, and LLCs?
Who should form a corporation?
How do I form a corporation?
Does running a corporation involve more paperwork than running other types of businesses?
How is corporate income taxed?
What is double taxation? Does it mean that corporate income is taxed twice?
What is a professional corporation?
Do I need to worry about securities laws when I issue stock in my corporation?
What is a corporation?
What sets the corporation apart from all other types of businesses is that a corporation is an independent legal entity, separate from the people who own, control, and manage it. In other words, corporation and tax laws view the corporation as a legal "person" that can enter into contracts, incur debts, and pay taxes apart from its owners. Other important characteristics also result from the corporation's separate existence: A corporation does not dissolve when its owners (shareholders) change or die, and the owners of a corporation have limited liability -- that is, they are not personally responsible for the corporation's debts.
To learn more about the corporate structure, read Corporation Basics.
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