1. Corporations

2. What is a corporation Form of business ownership
Considered a separate legal entity that is separate from the people who own and manage the business
Viewed as a legal “person” for the purposes of taxes, contracts, lawsuits, etc.

3. 3 Types of Corporations C Corporation S Corporation
Limited Liability Corporation

4. C Corporation (aka C Corp)
Owned by shareholders
No restrictions in who can be shareholder
Must elect a board of directors to make decisions and set policies
Business does not end when owners (shareholders) change or die
Limited Liability
Owners not responsible for company debts and can not be sued for corporate offenses
Double Taxation
Profits taxed at corporate level and dividends paid to shareholders are taxed

5. S Corporation (aka S Corp)
Similar to a C Corporation with a few main differences.
May have no more than 100 shareholders
Shareholders can not be non resident aliens or other businesses
Limited Liability
Profits are passed through to shareholders; no double taxation
Shareholders must include income on their personal tax returns even if the money is not actually distributed

6. Limited Liability Corporation (aka LLC)
Combines features of corporation and partnerships
Owners are called members
No restrictions on number of members in most states
Profits are passed through to shareholders; no double taxation
Not recognized by federal government and must file taxes as either a corporation, partnership, or sole proprietorship
Limited liability