Types of corporations
Each type of corporation has liability as an
entity. However, many times the individuals employed by a company are not held
liable for the actions of that entity. Yet, employees of a corporation can be
held liable in cases where they acted alone or without permission from the
corporation.
S corporation
S corporations enjoy limited liability, just
as many other types of corporations do. The factor which sets apart an S
corporation is the singular taxation on the profits of the company. The
dividends are distributed to shareholders and employees before the profits are
taxed. Each individual is then responsible to declare those dividends as income
and pay taxes as an individual.
C corporation
C corporations are those corporate entities
which receive double taxation on the profits of the company. The profit is
taxed at the corporate level and again when it is distributed to shareholders.
C corporations can become S corporations in order to receive singular taxation,
but it is dependent on the number of shareholders.
Multinational corporation
Multinational corporations are those
corporations which conduct business in more than one country. In most cases, a
multinational corporation will have their headquarters in one country with
offices being found in many other countries.
Corporate law
Corporate laws include those laws which
govern the actions and legality of those actions, of corporations as an entity.
In most cases, individuals cannot be held liable for actions of the corporate
entity, unless they acted as individuals rather than employees of that company.
Umbrella corporation
Umbrella corporations are those corporations
which offer legal and financial protection, as well as services too many smaller corporations. For example, umbrella corporations may distribute products from several manufacturing
corporations and then become responsible for any recalls of those products.
