Corporation

A corporation can have advantages over other business legal structures. The more popular corporation is either a C corporation or an S corporation. A C corporation has many tax advantages but C corporation laws are fairly new.

Corporation corporate structure

When starting a business, you may incorporate your business without an attorney as a corporation, but legal advice is highly recommended. The corporate structure is usually the most complex and more costly to organize than the other two business formations.

Control of corporation

Control of a corporate under a corporate structure depends on stock ownership. Persons with the largest stock ownership, not the total number of shareholders, control the corporation. With control of stock shares or 51 percent of stock, a person or group is able to make policy decisions. Control is exercised through regular board of directors' meetings and annual stockholders' meetings.

Corporation record keeping

Records must be kept to document decisions made by the board of directors. Small, closely held corporations can operate more informally, but record-keeping cannot be eliminated entirely. Officers of a corporation can be liable to stockholders for improper actions. Liability is generally limited to stock ownership, except where fraud is involved.

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