Corporate Forms of Business Ownership
WHAT IS A CORPORATION?
CLOSE & OPEN CORPORATIONS
transferring ownership to others
have a vote in decisions and appointing officers
buy new shares
share in the net proceeds (taken from all business assets) if the company goes out of business.
BOARD OF DIRECTORS
There is a limited liability to the owners and stockholders, and they are not legally liable for all debts beyond their investment.
It is very easy to transfer ownership and sell one's shares of the company. This allows the company to last much longer. Managers change over time without necessarily affecting the operation of ownership
There is an abundant amount of red tape provided by the government. There are many different laws and policies that must be met in order to continue the business legally.
Must obtain charter submitted my the secretary of state in order to be granted access to initially start your business.