What is a corporation?
A corporation is an independent, legal business entity that is separate from the people who own and operate it. This form of business operation is owned by shareholder(s) and guided by officer(s) authorized to act as a single entity.
What are the benefits of running a business as a corporation?
- Protection for personal assets: creating a corporation protects most personal assets. Stockholders, CEOs, officers and directors are not liable for obligations or debts.
- Anonymity: if you want to open a small business and would like to prevent your involvement from being public knowledge, setting your business entity up as a corporation might be your best option.
- Transfer of ownership: corporations can easily transfer ownership without having to be completely sold off.
- Lower taxes: in the United States a corporation can generally receive a large tax break over other company formations. This lower taxation bracket makes a strong argument for many growing companies to incorporate.
- Improved credibility: corporations are generally more trusted than other types of businesses because they have a tendency to spread out and have longevity.