A Business Organized As A Corporation

On dividends received because the corporation is sub-ject to income taxes on its earnings.

A business organized as a corporation. The Corporate Bylaws that are adopted when the company is first organized and can be amended later will specify how Directors can be elected or removed and how Officers are appointed or removed. Stockholders do not have to pay personal income taxes. There is no limit your corporation can have as many as are desirable or expedient to do business.

Start a corporate business requires complex paperwork. Corporate operations are costly. Can be transferred to new owners fairly easily.

- is not a separate legal entity in most states. Owners Liabilities Equity Received cash for services rendered Purchased office equipment on account. A corporation is a legal entity that is separate and distinct from its owners.

It is owned and operated by one or more shareholders and managed by a board of directors. - requires that stockholders be personally liable for the debts of the. Use a plus sign to indicate an increase and a minus sign --- to indicate a decrease.

Intro Every business must be organized legally Sole Partnership corporation Franchise is a contract relationship Agency Forms of business organization Sole proprietorship Partnership Corporation Agency a relationship that acts on behalf of the principal this results in a legally binding agreement between the principal and the 3rd party Is an exception to the doctrine of privity principles. How is a Corporation Organized and Managed. A corporation is a business or organization formed by a group of people and it has rights and liabilities separate from those of the individuals involved.

19 Analyze the transactions of a business organized as a corporation described below and indicate their effect on the basic accounting equation. Establishing a corporation is costly. Profits and losses belong to the corporation.