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Buyers > Tools > Business Organizations
Corporation
This information came from the State of New Jersey’s Web site.
Check with your accountant, lawyer or small business advisor for the most current information or changes to the tax law for this type of business organization.
In a Corporation the liability of the owners is limited to the
amount they pay for their shares of stock. A Corporation is a legal
entity, and its continuity is unaffected by death or the transfer of
shares of stock by any or all owners.
One disadvantage
of most Corporations is double taxation; income tax is levied
upon profits and dividends after they are paid to the
stockholders
However, in S
Corporations the profits are passed through to the individual
stockholders, much the same way as in a partnership. The result is
no federal income tax to the corporation as an entity.
There are
many differences between C Corporations,
S Corporations
and LLCs. There is also a taxation arrangement known as a
QSSS.
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Phases of Buying a Business |
Before you start familiarize yourself
with the
phases. |
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