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By: Nafeesah McCullus & O’Shea Donaldson Business Essentials 1st Period

ď‚ž Corporation-

A company or group of people authorized to as a single entity (legally a person) and recognized as such in law

 General

Corporation  Close Corporation  Subchapter S Corporation  S Corporation Restrictions  Limited Liability Company

 Also

known as “C” Corporation  Most common legal structure for incorporation  Can have an unlimited number of shareholders  Each shareholder’s personal liability is proportional to his/her amount of investment

 Most

appropriate for an individual starting a company alone  Limits stockholders to a maximum of 30  Directors must first offer the shares existing stockholders before selling to new stockholders  S-Corporation passes-through profit to shareholders


general corporation that has elected a special tax status  Allows the protection of liability  Income and losses are passed through to shareholders


legal form of business entity  “C” or traditional corporation  Shareholders are protected from the corporations liability  Maximum number of stockholders is 75  May issue only one class of stock

 Also

known as LLC  Is a flexible form of enterprise  Blends elements of partnerships and corporate structures  Benefit of pass-through taxations

 Owners

personal assets are protected

from: • Business Debts

• Liability  Tax

free benefits  Easier to raise capital through sale of stocks and bonds

 More

expensive to form than proprietorship  More expensive to form than partnerships  More legal formality  More state and federal rules and regulations


Business Corporation PowerPoint