TYPES OF CORPORATIONS Three types of corporations
C CORPORATION A C Corporation is a corporation that pays taxes on profits and provides personal liability protection that for its owners. Companies that sell their stock exchanges must be C corporations.
SUBCHAPTER S CORPORATION A subchapter S corporation is a corporation that provides limited liability to its owners and is taxed like a partnership. A subchapter S corporation is intended for small business with fewer than 100 stockholders.
NONPROFIT CORPORATION A Nonprofit corporation is a company set up to accomplish a specific mission rather than generate a profit. Nonprofit include charitable organizations and education and religious institutions.
ADVANTAGES OF A CORPORATION Perpetual life; if a shareholder sells stock, the company continues to exist because it is a separate legal entity. Investors; corporations can raise money by selling stock to investors. Credibility; the Inc. at the end of a company’s name adds credibility for many potential customers.