Business Finance
Becoming a Corporation

Question Description

I don’t know how to handle this Accounting question and need guidance.

Why does a company choose to form as a corporation? What are the steps required to become a corporation? What are the advantages and disadvantages of the corporate form of doing business?

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Final Answer

Companies choose to form as a corporation because they can exist a whole life. They can get the income from any investor.

Making a company corporation is depends on the type of company. Usual LLCs are able to be formed with nominal charges by filling a forms. If any bank or multinational company wants be corporation, it requires multi level of license in their wealth. US government has more than 40 legal applications for being corporation company.

One of the major disadvantage  is more tax for public corporation. Also business, which is not related to the company can be big issue. Also corporations have high maintenance expenses.

jigargati (1240)
Rice University

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