What is a Corporation?
A common understanding is that a corporation is a business entity that receives similar legal rights that of a person. To understand this concept properly, keep reading what is a corporation.
A corporation can be started by a group of persons or a single person. If it is a single person then the business is known as sole corporation and if it is created by a group then it is recognized as aggregate corporation. The corporation offers limited protection to people involved in the business. The main limitation is of liability that turns out amongst the many advantages to incorporation. The company locates in a specific country or state or province which is then governed by laws of incorporation in that particular state.
Corporation now be it private or public can be classified as non-stock corporation. If the stocks of the corporation are issued then shareholders will be governing it directly or indirectly. The hierarchy starts with board of directors who are the major decision makers for the corporation.
There are three major types of corporations in U.S. – Close, C and S, all functions a bit differently. Numerous books and websites have emerged recent years to aim small businesses to function in a better way. Most of the small businesses enjoy two major benefits – substantial legal and fiscal protection during bankruptcy or litigation, and potentially uninterrupted – getting abundant lifespan to roll the business. Different states come up with different fees for incorporation, but many are highly affordable.
2013-04-01 04:58:15
Source: http://www.whatisall.com/business-insight/what-is-a-corporation.html
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