By pinank jani

ADVANTAGES OF CORPORATION

TYPES OF CORPORATIONS

• Three types of corporations

C CORPORATION• A C Corporation is a corporation that pays taxes on profits and provides personal liability

protection that for its owners.

• Companies that sell their stock exchanges must be C corporations.

SUBCHAPTER S CORPORATION

• A subchapter S corporation is a corporation that provides limited liability to its owners and is taxed like a partnership.

• A subchapter S corporation is intended for small business with fewer than 100 stockholders.

NONPROFIT CORPORATION• A Nonprofit corporation is a company set up to accomplish a specific mission rather than

generate a profit.

• Nonprofit include charitable organizations and education and religious institutions.

ADVANTAGES OF A CORPORATION

• Perpetual life; if a shareholder sells stock, the company continues to exist because it is a separate legal entity.

• Investors; corporations can raise money by selling stock to investors.

• Credibility; the Inc. at the end of a company’s name adds credibility for many potential customers.