a disadvantage of corporations is that they generally require extensive paperwork
Any corporation willing to pay the necessary fees and fill out the required paperwork can become an S-Corporation. Corporations are expensive to set up and require extensive paperwork.
Corporations are very different from sole proprietorships and general partnerships. True False 38 Sharon Pebble and Gilbert Stone have just formed a business from BUS 75100 at University of Windsor A C corporation is owned by shareholders; however, they do not typically directly manage the company. Financial Accounting, Seventh Canadian Edition. Complex Process. They may also be benefit from the enhanced comparability to global companies provided by international standards. Kimmel, Weygandt, Kieso, Trenholm, Irvine, Burnley. The three types of corporations are General, S-Corp, and LLC. To form a corporation, you must file articles of incorporation with the state. ... is stored in different places and may even require that you find the right person before being able to respond. Depending on state law, corporations generally must keep records of annual meetings, share ownership and other corporate formalities. A corporation makes it easier to raise capital, attract investors and increase brand awareness. The benefits of forming a company depend on the business structure you choose. TRUE Explanation: Corporations do require specific federal and state filings to become incorporated. A disadvantage of corporations is that they generally require extensive paperwork. Instead, they influence corporate decisions through electing and removing directors, approving or disapproving amendments to the Articles of Incorporation and voting on major corporate issues. Business owners who plan to form a corporation in Florida, for example, can expect to pay $87.50 for incorporation, $150-to-$550 on for-profit annual reports, $61.25 on nonprofit annual reports and fees ranging from $35.00-to-$600 for other services. In forming a corporation, prospective shareholders exchange money, property, or both, for the corporation's capital stock. Although it may consist of many different people, such as directors, officers, and shareholders, a corporation is a legal entity in and of itself. Thus, they can be more expensive to start up than other types of business structures. This is no good if they … Although corporations are complex, they bear many advantages over the other forms of business. There are certain disadvantages of setting up a corporation that Sam must consider before getting into it. C. The major attraction of S-Corporations is that they avoid the problem of double taxation. A corporation is a type of corporate entity that is formed specifically to perform activities, such as running a business, while being officially treated in many ways as an individual. Government Regulation: The Good, The Bad, & The Ugly The authors of this paper examine the important role regulations play in a vibrant economy, how they differ from other government programs, why they can produce unintended consequences, and how reforms could help us achieve the benefits regulations can provide with fewer negative outcomes. Learn vocabulary, terms, and more with flashcards, games, and other study tools. B. This is True. Corporations are the most complicated of the three based on the various levels of operation and extensive ownership of the companies. Since private corporations tend to be smaller with easier access to company information, their users do not require as extensive reporting. They require less record-keeping and don’t need to hold yearly shareholder meetings, making …