Nature & Advantages of Corporation

Question 1

Corporation Generally

Answer 1

• Corporation is a separate legal entity form its shareholders
• Lasts as long as you file an annual report

Question 2

Advantages of Corporate Form

Answer 2

• limited liability of shareholders for corporate obligations;
• centralized management;
• continuity of existence;
• ease of transferring ownership; and
• access to capital through the sale of shares

Question 3

Taxation

Answer 3

Corporate earnings paid to shareholders are subject to double taxation

Question 4

Annual Report Requirements

Answer 4

1. corporation’s name
2. date of incorporation
3. address of its principal office
4. federal employer identification number (EIN)
5. names and business street addresses of its principal officers and directors
6. street address and name of its registered agent