Firstly, a C Corporation can be defined as a legal unit of business that has its own separate identity from its owners or the persons that form it. To use the general legal term, it is a “body corporate”, a “legal entity”, which simply means a corporation can be treated just like an individual in law, it can sue and can be sued. This singular characteristic does not only make it quite unique but also gives it an edge over other business entities such as sole proprietor, partnership, limited liability Company to mention but few.
However, the two major types of corporation, which are the C Corporation and S Corporation. The C Corporation has quite numerous benefits; the most technical of these is its ability to guard its owners’ personal assets from judgment against the business. Owners can also split profit and loss with the business for a lower overall tax rate. Yet another benefit is that it has no limits in number of shareholders and owner. Again, Owners do not need to be U. S. citizens or residents; both foreign and local are equally allowed to share in its ownership.
A C corporation also has the flexibility of being owned by yet another business entity, rather than an individual or several individuals. Finally, the C Corporation has a package of much greater tax advantages over any other business entity, for it was primarily designated for tax purposes, while the “S” corporation passes it tax to the shareholders, the C Corporation on the other hand acts as it own tax entity. Reference Bakan J. , 2004, The Corporation: The Pathological Pursuit of Profit and Power. USA
Courtney from Study Moose
Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/3TYhaX