A Corporation, Which Is Sometimes Called C Corporation,

832 WordsMay 24, 20174 Pages
A Corporation, which is sometimes called C Corporation, is a group of company or an independent legal entity owned by shareholders and authorized by state, with a separate and unique existence from its owner. Lau & Johnson (2011, p. 195) It is more elaborate than the other business forms due to the fact that it is costly to set up, involve corporate tax and legal requirement. They offer the capacity to sell ownership shares in the company through stock and to the public through initial public offering (IPO), which is the main selling point in pulling investment capital and high quality employees. Furthermore, as mentioned above, corporation is established under the law of the state in which it is filed and in order to start a corporation…show more content…
The disadvantages of corporation is that it is expensive and time-consuming when setting it up and in operation as well, double taxing and record keeping encumbrances in relation to the entity. Having said all that, there are basic requirements needed in establishing corporation in other countries such as United States, India and China and we are going to discuss all about it below. The process of establishing corporation in the United Sates is easy and straightforward and the basic requirements needed to establish corporation in the United States of America it involves the following: 1. Ascertain a legal structure, which depends on the level of control one want to have, business vulnerability to lawsuits and the financing needs. The type of legal entity chosen will determine the additional registration requirement, that is, one may have to register with states and/or local government after deciding on the legal structure and this consideration changes from state to state. 2. Register the business name; this could be Doing Business As (DBA), assumed name or Fictitious name and it must comply with the rules of the state’s corporation division. The name of the new corporation must not be an existing
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