My Choice - Corporation

Corporations are granted legal identity, which implies they are recognized as artificial
entities. Corporations can own assets, borrow money in their name, and sue or be sued.
Corporations are generally regarded as legal entities distinct from their shareholders,
executives, and directors. Corporate liabilities continue to be the corporation's liability, not
the shareholders, directors, or officers who own and/or operate for the entity. I chose
corporation as the type of business among all other type of businesses because a
corporation has a vast opportunities and advantages. Some of it is that owners can have
limited liabilities for their company’s debt. More to this, corporations can also be identified
as S corporation wherein similar to a regular corporation with owners are able to corporate
loss to offset income from some other sources, Professional corporation where business
owners have no personal liability for malpractices, and Nonprofit corporation in which
corporations doesn’t pay income taxes, to name some.

I chose corporation because it offers the strongest protection from business liability for its
owners and shareholders. Individuals and/or other entities can own a corporation, and
ownership is easily transferred through the purchase and sale of shares. It is frequently
referred to as the "corporate veil" since it protects shareholders and management from
liabilities. Shareholders and management are shielded from obligations and occasionally
liabilities by this veil. Corporations are also the longest standing business type of structure
there is, and they tip the pack in terms of shareholder flexibility and protection. In addition,
corporations provide us the best and strongest security against company liability. An
advantage in operation in this type of business (Corporation) is that the business is viable in
which it an be more attractive to investors and creditors.

However, there are also disadvantages of operating a corporation. Some of its potential
disadvantages include double taxation, formation and ongoing expenses, and corporate
formalities. When corporate profits are given to owners in the form of dividends, they are
liable to double taxation. When tax is first paid at the corporate level, a double tax is
established. Having a corporation, incorporation articles are needed to be filed with the
state and any state filling fees must be paid. In which, charges are imposed on corporations
like yearly report and/or franchise tax payments. Having this therefore leads a forming
corporation to be more expensive than of forming a sole proprietorship and partnership,
which both are not required from filling formation forms in with the state.

The ownership of a Corporation are subdivided among its shareholders in the form of stocks
and shares. Despite some of the disadvantages in a Corporation type of operation, I would
strongly stick to my choice. These common threat present in this type of business can be
avoided. A corporation is formed together with the stated and implicit powers required to
carry out its mission. Corporations are an excellent asset that can be use as a protection.
When we seek to change ownership of a firm, corporations provides the most remarkable
versatility. Which is why, corporation for me is the best type of business to operate with.
REFERENCES

Business Structures for Startups | Founder’s Guide. (2015, May 28).

https://foundersguide.com/a-quick-look-of-business-structures-for-startups/

BizFilings. (2008, February 26). The 7 Benefits of Forming a Corporation. StartupNation;

StartupNation Media Group.

https://startupnation.com/start-your-business/plan-your-business/benefits-of-forming-

a-corporation/

Bragg, S. (2018, December 29). AccountingTools. AccountingTools.

https://www.accountingtools.com/articles/corporation-advantages-and-disadvantages.

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