Corporation

And the reality around them

"Big Business"

A corporation is a business owned by a group of people and authorized by government to act as though it were a single person through a Charter or Certificate of Incorporation (seen to the right). Corporations can borrow money, own property, or be sued just like a person can .In comparison to the other ways to run a business corporations are typically larger in size but smaller in number. You see corporations everyday often times in the title of some companies which pun Inc. as a suffix to the name.Since corporations tend to be large company they often employ millions of people and sale 20 times as many goods at proprietorship and six times as much as a partnership. Since corporations are so big ownership is often divided among three groups: Directors, Stockholders, and Officers.

Closed vs Open Corporations

In a closed corporation, ownership is not purchasable by the general public and is held to fewer members such as highly ranked employees or bigger businessmen and women. In most states a private corporation does not have to release sales figures or other info to the public because stockholders are not the general public. An example of a closed corporation would be Dell computers. In contrast an open corporation can be bought by most people on the stock market and shares are sold to a large amount of people for what the estimated worth of the company is at one particular moment. This ownership can be sold and bought often and sold just as fast. An example of an open corporation would have to be google.

Goverment Regulations

If you plan on forming a corporation be ready for the mounds of red tape and auditors headed your way. To begin a corporation you must receive a charter talked about earlier but in the charter must list product or service that you may sell, have name Inc. some where in the official title of the business, and paying corporation cost. This is a tax based on capital stock or what company may be worth. Also a business must pay a filing tax to make all paper work acceptable and have permission to make sales in a particular state. Additional taxes not placed on other business is also applied such as double taxation on stockholders profits to ownership to the company.