The basics
this is the legal process of forming a corporation, often ending with the suffix inc or Corp
incorporation
These individuals are the true owners of a C-Corp
shareholders
this two-word term means owners are generally not personally responsible for the company's debts
limited liability
this group is elected by shareholders to over see the high level strategy of the company
board of directors
Unlike a C-corp, this simple business type has only one owner who is personally liable for everything
sole proprietorship
unlike a sole proprietorship, a C Corp is considered a separate legal ___ from its owners.
entity
this is the biggest downside of a c-corp where profits are taxed at the corporate level and again on personal dividends
double taxation
If a c-corp looses a law suit a Shareholder usually only looses the money they ___ in the company.
invested
these individuals (like the CEO or CFO) are hired by the board to manage the day to day operations
officers
this business type is a hybrid that offers limited liability but avoids double taxation
limited liability company
this document acts as the constitution for the company, outlining its basic purpose and structure
articles of incorporation
This is the portion of a corporations profit paid out to its shareholders
dividends
the metaphorical barrier protects a shareholders personal assets from business creditors
corporate veil
this specific officer is responsible for the overall vision and is the highest ranked person in the company
CEO
while c-corps that meet specific IRS requirements can apply for this status to be taxed like a partnership
S-corporation
while a S- Corp has a limit of 100 shareholders, a C-corp can have how many owners?
unlimited
c-corps are often preferred by investors because they can issue different classes of this, such as common or preferred
stock
if a business owner mixes personal money with business money, a judge might do this to the veil making the owner personally liable
piercing the corporate veil
These are the internal rules a corporation adopts to govern its daily conduct and meetings
corporate bylaws
While c-corps pay their own taxes, these types of entities "pass through" profits directly to owner tax returns
pass-through entities
this term describes the fact that a corporation continues to exist even if the owners change or pass away.
perpetual existence
SEC (securities and exchange commission)
even with the limited liability, directors can still be sued if they fail to act in the best interest of the company, known as a breach of this "duty"
fiduciary duty
this is the annual meeting where shareholders gather to vote on major decisions
Annual Shareholder Meeting
This is the U.S state where more than half of all public C-corps are incorporated due to its business-friendly laws
Delaware