Obviously a corporation has more of a hefty

Obviously a corporation has more of a hefty
startup cost compared to that of the other forms of business organizations,
there’s a substantial amount of paperwork to go along with filings to state
agencies every year. But the
primary disadvantage of the corporate form is its susceptibility to double
taxation to shareholders of distributed earnings and dividends. Because
a corporation exists as a separate legal structure, it is obligated to pay
taxes, almost as if it were considered as a person or “resident” under the law (Ross,
Jordan, & Westerfield, 2016). Additionally, the corporation’s cash
dividends paid out to its stockholders is taxed a second time as income to
those stockholders. This whole process is known as double taxation; where
corporation’s profits are taxed at the corporate level when they are initially
earned, and then once again on an individual level when those profits are paid
out.

Corporations generally
have a separation of ownership and management

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