How is a corporation formed and explain the benefits and detriments in forming such an entity.

Question

How is a corporation formed and explain the benefits and detriments in forming such an entity.

Answer 1

you must incorporate with your state to become a corporation, which requires filling out paperwork and paying a fee.

benefits include limiting your exposure to risk, especially in other forms of corporate entties such as limited or general partnerships.  corporations are also perpetual - they don't die like humans.

but, w/a C corporation, you're subject to double taxation.  S corp, and partnerships, and LLC (limited liability companies) alleviate that.  corporations often have shareholders you have to deal with as well.

Answer 2

Go read your text book!!!