Category Corporations

A corporation is a type of business organization that is established as a legal entity separate from its owners. This means that the corporation can enter into contracts, own assets, and conduct business in its own name. The owners of a corporation are known as shareholders, and they own the corporation through the ownership of shares of stock.
One of the key advantages of a corporation is that it provides limited liability protection for its owners. This means that the shareholders are not personally liable for the debts and obligations of the corporation beyond the amount of their investment in the company. This limited liability protection is one of the main reasons why corporations are popular among investors and entrepreneurs.
Corporations are typically governed by a board of directors, who are elected by the shareholders. The board of directors is responsible for making major business decisions and overseeing the management of the corporation. The day-to-day management of the corporation is typically carried out by a team of executives, including a CEO, CFO, and other top-level managers.
In addition to limited liability protection, corporations offer a number of other advantages, including the ability to raise capital through the sale of stock, the ability to attract and retain talented employees through the use of stock-based compensation, and the ability to continue operating even if one or more of the shareholders dies or sells their shares.
However, corporations are also subject to a number of legal and regulatory requirements, including the need to file annual reports with government agencies, the requirement to hold regular shareholder meetings, and the need to comply with various securities laws and regulations. Additionally, corporations are subject to higher tax rates than other forms of business organization, which can be a disadvantage in certain circumstances.