Starting your own business can be exciting, but it’s also an enormous undertaking that requires hard work and long-term dedication to succeed. As such, it’s important to choose the right type of business for you, one that will help you achieve your goals without draining your financial resources or physical and mental health. Knowing what each type of business has to offer before making your decision will enable you to make a more informed choice about the path you want to take in life.
A corporation (also known as a company) is an independent legal entity that has been created by state law, other than a trust. A corporation may be either privately or publicly held.
The owners, who are known as shareholders, own stock and have limited liability. This means they can only lose the amount they invest in the company.
Shareholders elect directors who manage the company on their behalf and establish a set of corporate bylaws that govern how the corporation operates.