Corporation
A corporation is a form of business ownership that is a legal entity separate from its owners. Shareholders have limited liability, so their personal assets are generally protected from business debts. A board of directors oversees the company on their behalf. Corporations can raise money by selling stock, but they face more regulation than a sole proprietorship.
A C corporation is taxed on its profit, and owners are taxed again on dividends. An S corporation passes profits through to the owners’ personal tax returns, so that company-level tax does not apply.
