The Business Form Of Corporation

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Corporation
This form is extensive and requires a tremendous amount of involvement of all members. The advantages of this business form is all liability is retained by the corporation, however, if the bank is requiring specific personal guarantees by the brothers, either they agree or offer assets as collateral to alleviate no other liability other than the assets pledged. This form allows the business to be a separate unit from the owners and shareholders. Shareholders own the business and are limited in their liability solely for the amount invested into the company. This means the owners are not managing the business, meaning shareholders elect a board of directors to manage the business. The business and shareholders are taxed on the profits and dividends respectively. This indicates the business is double taxed and is much higher in this form than in all of the other forms. However, the Subchapter S Corporation provides for the same flow through benefits of the LLC. The significant difference is the corporation is established by the Federal Government instead of at the ...

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