corporation

Examples of corporation in the following topics:

• Types of Corporations

  • C corporation refers to any corporation that, under United States federal income tax law, is taxed separately from its owners .
  • A C corporation is distinguished from an S corporation, which generally is not taxed separately.
  • S corporations are merely corporations that elect to pass corporate income, losses, deductions, and credit through to their shareholders for federal tax purposes.
  • Like a C corporation, an S corporation is generally a corporation under the law of the state in which the entity is organized.
  • Must be an eligible entity (a domestic corporation, or a limited liability company which has elected to be taxed as a corporation).

• Pros and Cons of a Corporation

  • The corporation is one type of business structure.
  • Similarly, the corporation does not cease to exist with the death of shareholders, directors, or officers of the corporation.
  • Another benefit of the corporate structure is that, in the United States, corporations are generally taxed at a lower rate than are individuals.
  • S corporations are merely corporations that elect to pass corporate income, losses, deductions, and credit through to their shareholders for federal tax purposes.
  • Also, certain corporate penalty taxes (e.g., accumulated earnings tax, personal holding company tax) and the alternative minimum tax do not apply to an S corporation.

• S-Corporations (S-Corps)

  • S corporations elect to pass corporate income, losses, deductions, and credit through to their shareholders for federal tax purposes.
  • Like a C corporation, an S corporation is generally subject to the laws of the state in which it is organized.
  • In order to be eligible for S corporation status, a corporation must meet certain requirements:
  • Be an eligible entity (a domestic corporation, or a limited liability company which has elected to be taxed as a corporation)
  • However, certain trusts, estates, and tax-exempt corporations, notably 501(c)(3) corporations, are permitted to be shareholders.

• Corporations and Corporate Power

  • Corporations have powerful legal rights, and some have revenues that exceed the revenues of sovereign nations.
  • Once incorporated, a corporation has artificial personhood everywhere it operates, until the corporation is dissolved.
  • A multinational corporation (MNC) is a corporation that either manages production or delivers services in more than one country .
  • Anti-corporate advocates express the commonly held view that corporations answer only to shareholders, and give little consideration to human rights, environmental concerns, or other cultural issues.
  • Multinational corporations are important factors in the processes of globalization .

• Corporate Taxes

  • Corporate taxes are especially complicated because of the inherent complexities of corporations themselves.
  • Corporate taxation differs depending upon the legal form of the corporation.
  • A C corporation refers to any corporation that is taxed separately from its owners.
  • Owners of C corporations are personally protected from any liability of the company - an idea known as the corporate veil.
  • Shareholders generally cannot include corporations or partnerships (certain trusts, estates and tax-exempt corporations are permitted).

• Structure of Corporations

  • Corporate structure consists of various departments that contribute to the company's overall mission and goals.
  • Another way a corporate structure can be defined is by business divisions.
  • Hewlett Packard (HP) is a good example of a corporate structure including multiple divisions.
  • Google Video is a division of Google, and is part of the same corporate entity.
  • Hewlett Packard is an example of a corporation with multiple divisions and subsidiaries.

• Corporations

  • A corporation has limited liability.Stockholders own the corporation, and they are not liable for a corporation's debt.If a corporation fails, subsequently, the stockholders only lose their investment, the amount of common stock that they had purchased.
  • Stockholders can easily transfer corporate ownership.Stocks are certificates that represent ownership in a corporation, and stockholders can freely buy or sell stock to other investors through the stock market.
  • Stockholders do not have a mutual agency relationship, where the stockholders cannot bind a corporation to contracts.Stockholders have no say in the daily operation of the corporation even though they own the corporation.
  • Corporations have two disadvantages.First, government heavily regulates corporations.Corporations file many reports with government because corporations can expand into many countries, markets, and industries.Corporations may encourage regulations because bureaucratic red tape creates barriers to entry.Thus, new companies experience troubles entering the market with complex and arduous regulations.Second, government imposes taxes twice on corporations.Corporations pay taxes from their profits.Then stockholders receive profit from the corporation as dividends, and the dividends become income to the stockholder that a government also taxes.
  • Protected Preferred Stock – a corporation must deposit part of its profits into a fund, and, thus, the corporation can guarantee dividend payments to preferred stockholders.

• Government Corporations

  • Government corporations are revenue generating enterprises that are legally distinct from but operated by the federal government.
  • A government-owned corporation, also known as a state-owned company, state enterprise, publicly owned corporation, or commercial government agency, is a legal entity created by a government to undertake commercial activities on behalf of the government.
  • In some cases, government-owned corporations are considered part of the government, and are directly controlled by it.
  • Corporations in this category include the Corporation for Public Broadcasting, the National Fish and Wildlife Foundation, The National Park Foundation, and many others.
  • Lastly, the government sometimes controls government acquired corporations--corporations that were not chartered or created by the government, but which it comes to possess and operate.

• Corporate Bonds

  • A corporate bond is issued by a corporation seeking to raise money in order to expand its business.
  • A corporate bond is issued by a corporation seeking to raise money in order to expand the business.
  • The term corporate bond is usually applied to longer-term debt instruments with a maturity date falling at least a year after the issue date.
  • Strictly speaking, however, the term only applies to bonds issued by corporations .
  • A corporate bond is issued by a corporation seeking to raise money in order to expand its business.

• The Process of Incorporation

  • Suppose you decide to form a corporation to import and distribute shoes.
  • Incorporation is the formation of a new corporation.
  • Some corporations choose not to have a descriptive element.
  • Some state laws are particularly corporate-friendly.
  • Also, they can own shares in other corporations and receive corporate dividends 80 percent tax-free.