CORPORATION

BY:Breann Overman

ADVANTAGES

  • Corporations can obtain more capital through the sale of their actions.
  • A corporation can deduct the cost of benefits (benefits package) that offers to its managers and employees.
  • If you meet certain requirements, you can opt for declared as a corporation S. This selection allows that the company is subject to a payment of taxes similar to that of a society.

Disadvantages

  • The process of integration requires more time and money to compare to other models of organization.
  • The corporations are supervised and subject to rules of entities: federal, state and some local, and therefore might have to comply with many more requirements and administrative documents to demonstrate compliance.
  • The incorporation of a company could result in the payment of more taxes. The dividends paid to shareholders are not deductible as a corporate spending; therefore, that income may be subject to a double taxation.