Corporation
Corporations can be structured in a variety of ways, such as a C corporation, S corporation, or Limited Liability Company (LLC). They can also be classified as publicly traded or privately held. Publicly traded corporations issue shares of stock to the public and are traded on a stock exchange, while privately held corporations are owned by a small group of individuals or investors.
Corporations are a popular form of business organization because they offer several benefits, including:
Limited liability protection: As mentioned earlier, corporations provide limited liability protection to their owners, which means that their personal assets are protected from the debts and liabilities of the corporation.
Access to capital: Corporations can issue shares of stock to the public, which allows them to raise capital to fund their operations and growth.
Perpetual existence: Unlike sole proprietorships or partnerships, corporations have perpetual existence, meaning they can continue to exist even if one or more of the owners die or leave the business.
Separate legal entity: Corporations are separate legal entities from their owners, which means they can enter into contracts, sue or be sued, and own property in their own name.
However, corporations are also subject to more regulations and legal requirements than other forms of business organizations, and they typically require more paperwork and formalities to operate.
