CORPORATIONS

A widely used type of business organizational form is the corporation. Corporations consist of shareholders, which are the owners of the business. A board of directors, elected by the shareholders, manages the business. One of the key advantages of the corporate form of business is that the liability of its owners (shareholders) is limited to their investments. Their personal estates are usually not liable for the obligations of the corporation.

The corporation is a creature of statute. A corporation is an artificial being, existing in law only and neither tangible or visible. Its existence depends generally upon state law. It has its own corporate name and is owned by individual shareholders. It is a legal entity with rights and responsibilities. The corporation substitutes itself for its shareholders in conducting corporate business and in incurring liability, yet its authority to act and the liability for its actions are separate and apart from the individuals who own it.

The classification of a corporation normally depends upon its location, purpose, and ownership characteristics. Some examples of classifications of corporations are:

• Domestic Corporation
• Foreign Corporation
• S Corporation
• Close Corporation
• Alien Corporation
• Public Corporation
• Private Corporation
• Nonprofit Corporation

Partnership | Limited Liability Company | S Corporation

FOR FURTHER INFORMATION ON CORPORATIONS OR
ANY BUSINESS MATTER PLEASE CALL
JEFFREY S. POSIN & ASSOCIATES -- (702) 396-8888

WE'LL HELP YOU DETERMINE THE RIGHT STRUCTURE
FOR YOUR BUSINESS!