Businesses {charter} {corporation}| can be legal entities allowed by states and have ownership shares.
profit
Corporation profits go to stockholders. Corporations can use profits to pay dividends {earnings per share} or to expand capital.
startup
Writing incorporation articles and bylaws and applying to state cause higher costs for forming corporations. Corporations pay annual fee to state.
taxes
Owners do not file tax returns and have no personal liability. Profit-making corporations can be C or S corporations.
Corporations can pay profits to stockholders. Company reports profit per stock share {dividend, stock}|.
Stockholders are responsible for corporation debt only up to stock value {limited liability}|.
Corporations {C corporation} can file tax returns. Owners are employees and do not file. Small C corporations typically do not pay taxes, because profits are for inventory or growth.
Some corporations {close corporation}| do not trade stocks.
Companies {holding company}| can own other corporations.
Corporations {limited liability company} (llc) can file tax return but not pay taxes. Owners file tax returns but have no personal liability. State typically closely regulates limited liability companies.
Corporations {personal service corporation}| (PSC) {professional corporation} can have license and have close regulation by state. They are only for health, law, engineering, accounting, actuarial science, performing arts, and consulting professionals, who cannot otherwise incorporate. Personal service corporations file tax returns. Owners do not file tax returns but have limited personal liability. Personal service corporations typically have lower taxes because they allow untaxed fringe benefits.
Owners can file tax returns, not their corporations {S corporation}. Owners have individual tax rates. Owners assign profits and losses. Profits cannot be for inventory or growth. S corporations are typically good for businesses that expect to lose money during first years, because owners can report losses on tax returns.
Corporations issue ownership certificates {preferred stock}| that have first rights to profits and repayment.
Corporations issue ownership certificates {share}| {common stock, share} for percentage of corporation, to get money to start, expand, or pay expenses.
6-Economics-Microeconomics-Business-Kinds
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Date Modified: 2022.0225