A corporation (sometimes called a C corporation) is an independent legal entity owned by shareholders. This means that the corporation itself, not the shareholders who own, is what is considered legally responsible for the actions and debts incurred by the business.
Corporations are more complex than other business structures because they tend to be costly administrative fees and complex legal and tax requirements. Because of these problems, corporations usually suggested for established and larger companies with many employees.
Business in that position, corporations offer the ability to sell shares held in the company through stock offerings. Login to make a public sale of shares through (in English) of an initial public offering (IPO) is an important point to attract investment capital and selling high quality employees.
Forming a corporation
A corporation formed under the laws of the state in which it is registered. To form a corporation, you should establish your business name and register your legal name in your state. If you decide to operate under a different name officially registered name, possibly have to file a fictitious name (also known as false name, trade name or DBA name, which is short for “doing business as”). State laws vary, but in general, corporations must include a corporate designation (Corporation, Incorporated, Limited) at the end of the trade name.
To register your business (in English) as a corporation, you must file certain documents, usually statutes, in the office of the Secretary of State for your state. Some states require corporations established directors and issue certificates of shares to shareholders in the initial registration process. Contact the registrar of commercial entities in your state to find out about specific filing requirements in the state where your business forms.
Once your company is registered, you must obtain business licenses and permits. Regulations vary by industry, state and locality. Our tool return to the usage Licenses and Permits (in English) to find a list of permits, licenses and federal, state and local records you need to run a business.
Advantages of a corporation
Disadvantages of a corporation.