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What are the four types of corporations? What makes each corporation

different? What are advantages and...
What are the four types of corporations? What makes each corporation different? What are advantages and disadvantages to the most common form of corporation?

Your response should be at least 200 words in length. All sources used, must be referenced; paraphrased and quoted material must have accompanying citations. Need by Tuesday by 6:00pm..
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4/10/2012
chibiutena
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The four types of corporations are general corporations, C corporations, S corporations and LLC (Limited Liability Companies). The General Corporation defines itself as a separate legal organization that limits the amount of personal liability and with an unlimited number of possible shareholders. A C-corporation shares many similarities with a general corporation. However, a C corporation limits the number of shareholders from 30 to 50 (in most states). This has a separate advantage and disadvantage in that there are less stakeholders to account for but the opportunities for raising capital are more limited. An S corporation has a separate tax requirement compared to a General and C corporation. In an S corporation, the income and loss of the shareholder and the company are all reported on a single tax return. This mitigates double taxation that is most commonly found in general corporations. Unlike a general corporation, the max number of shareholders for an S corporation is 75 and S corporations can only issue one stock class. Limited Liability Companies have similarities to all classes of corporations. However, it generally has less stakeholders, cannot issue stock and may have a limited life span.

The advantages of a general corporation include the protection of personal assets, the unlimited life span and the ease of transferring ownership or raising capital. Disadvantages of a general corporation include increased tax regulations, legal ramifications and federal/state regulations. A general corporation has to pay “double tax” for income generated from the company and personally (“Different Types of Corporations”, 2009). References: Different types of corporations: Advantages/ disadvantages of corporations. (2009, March 20). Retrieved from http://www.morebusiness.com/getting_started/incorporating/d934832501.brc
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