Company incorporation is a kind of business cooperation that offers companies numerous benefits over being a sole proprietor. The major benefits includes liability protection and additional tax deductions. Company corporation gives you a leeway to easily raise capital through the sales of shares of your company.
Due to Small Business Computing, there are three common corporate structure which includes:
C Corporation: C Corporation is one of the most common business corporation existin g today. It is established as a legal entity which is totally controlled by company shareholders.
S Corporation: S Corporation provides you with liability protection to shareholders. With this, the shareholders has the liberty to enjoy certain tax breaks which is not offered under the business structures.
Limited Liability Corporation: Limited Liability Corporation (LLCs) gives you the benefit from side-stepping double taxation on corporate profits. With this, members has the freedom to report profit or loss on their individual tax returns.