By: Christopher Goings
How does the corporation start.
You and a group of people need to get a document that is called a charter. This document from the state is the way the state grants the power to operate as a corporation.
What are advantages to being in a corporation?
Some advantages to being in a corporation is first, all of the pressure is not on you. Second you and your partner get to decide how the payment percentage is. If you think you put more money into it yall could agree that one gets 60% and 40% or split it evenly.
What are some disadvantages?
Some disadvantages could be first you can only get out if the contract is changed or if more people are added to the contact. Another one could be if your partner decides he cant pay for his part that month you have to.
What is a closed corporation? What is a open corporation?
An closed corporation is one that does not offer its shares of stock for public sale.
An open corporation is one that offers its shares of stock for public sale.
Naming the business
A business is usually required by law to have a name that indicates clearly that a corporation has been formed
Paying incorporation costs
Usually a new corporation must pay an organization tax based on the amount of its capital stock.
Permanency of existence
The corporation is a more permanent type of organization than the proprietorship or partnership.
Government regulations and reports
A corporation cannot do business wherever it pleases.
The corporation is usually subject to more taxes than are imposed on the proprietorship and the partnership. the most unique to the corporation are a filling fee.