Corporation

General Information

A corporation is an independent legal entity. A corporation can do business and own property under its own name. The primary benefit of forming a corporation is limited liability for the owners or shareholders. Because the corporation is a separate legal entity, its shareholders only stand to lose that which they have contributed to the corporation, of course there are always exceptions. The downfalls of a corporation include double taxation; a corporation is taxed as a separate legal entity and the shareholders are again taxed on their individual earnings or dividends. A corporation is managed by a board of directors. The board of directors are elected by shareholders. The day to day operations of the corporation are handled by officers who are elected by the board of directors.