Corporations

Corporations are one type of a business, with other types being Sole Proprietorship or Partnership.  They generally have the following characteristics:

• The Shareholders are the owners of the corporation.  There can be one shareholder or a million.
• Common shareholders have voting rights.
• Corporations can either be public or private.
• The Corporation is its own legal entity.
• Corporations have limited liability, which means that the shareholders cannot be sued personally.
• The Board of Directors, which are elected by the shareholders, are in charge of governance and setting various corporate policies.
• It is the most complicated business structure.

Depending on the type of business one has, he/she may or may not want to incorporate.  Here are some things to think about:

Advantages	Disadvantages
Limited liability	Government regulations
Easy to raise capital	Organizational costs
Continuous life	Lack of direct influence
Ease of transferring ownership	Tax Considerations
Tax considerations