1. Business that is registered by the state and
operates apart from its owners
A corporation lives on after the owners have
sold their interests or passed away
Ownership or equity in a corporation is
represented by shares of stock
2. Owners of a corporation
In smaller corporations, the founders
generally hold the majority of the stock
This gives them the power to make policy
decisions
3. Limited Liability
More professional appearance
Continuous life regardless of changes in
ownership
Structured to accommodate employee
benefits
4. Expensive to set up
$500-$2500 to set up a corporation
Income is more taxed
5. Dividends are paid to shareholders as profits
are produced and stock value increases
Board of Directors handles all day-to-day
management decisions