Corporation - 2007/05/10 22:12
A corporation is owned by one or more stockholders, managed by a board of directors elected by the stockholders, and run day-to-day by officers appointed by the board of directors. A single individual can be the sole stockholder, director and officer of the company. The stockholders, directors and officers of the company are protected from the liabilities of the company, including liabilities for their own negligence when acting in their corporate role, except in certain extraordinary circumstances. In an ordinary corporation (a "C Corporation") the profits and losses of the corporation are not passed through to the tax returns of the owners. The corporation files its own tax return and pays its own taxes. It may also be subject to state franchise taxes or other annual fees. As for individuals, corporate income tax rates are graduated based upon the taxable income, though the rates and levels of the brackets are different than for individuals. Whether incorporating will cost you more or less in taxes than another structure varies from situation to situation, so consult with a tax professional if you are considering incorporating
Start A Business
