Corporations
A corporation is a type of business structure that is legally recognized as a separate entity from its owners, called shareholders. This means that the corporation can enter into contracts, sue or be sued, own assets, and conduct business activities in its own name. In a corporation, shareholders provide the capital to start and operate the business, but they have limited liability for the corporation's debts and obligations. This means that their personal assets are generally protected from the corporation's financial losses or legal issues. Corporations are managed by a board of directors, who are elected by the shareholders. The board of directors makes strategic decisions and hires officers to manage the day-to-day operations of the business. Corporations are often used by large companies because they provide a formalized structure that allows for easy management, growth, and expansion. Additionally, they can raise capital by issuing stocks or bonds to the public.
S- Corporation
An S-Corporation is a special type of corporation which is recognized by the IRS. It is designed to provide a pass-through tax structure to the owners of the corporation. Owners of an S-Corporation are referred to as shareholders and they are not subject to corporate income taxes, only individual income taxes. It is important to note that the shareholders of an S-Corporation must be individuals, not other corporations or partnerships.
C- Corporation
A C-Corporation is a type of business entity that is a separate legal entity from its owners. It is the most common type of corporation and offers limited liability, centralized management, and transferability of ownership. C-Corporations are subject to double taxation, meaning that the company pays taxes on its profits and shareholders pay taxes on dividends they receive. As a result, C-Corporations are best suited for larger businesses that expect to generate significant income.
B- Corporation
B Corps are still a relatively new concept – the first companies were certified in 2007 – there’s a lot of confusion about what they actually are. Certified B-Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. B-Corps are accelerating a global culture shift to redefine success in business and build a more inclusive and sustainable economy.