corporation?
Q. what is corporation? define and give example please.
Asked by Wenson L - Thu Feb 15 14:39:39 2007 - - 4 Answers - 0 Comments

A. A corporation is a separate entity that files its own tax return... The purpose is to keep the business separate from the individual... for example, if someone has a business, it's best to incorporate in case the business gets sued for a lot of money... (also for tax benefits)... If the company gets sued, the corporation is liable to pay, not the individual... in other words, the individual is not required to give up his money and assets to pay on a judgment against the company because the company is a separate entity... In California one (1) person can form a corporation..
Answered by Just moi - Thu Feb 15 14:47:14 2007

If a corporation invests in municipal bonds, is the interest they receive on the investment tax-free?
Q. I understand that if an individual invests in municipal bonds, they do not have to pay federal income tax on the interest, and usually do not have to pay state income tax on the interest either. But what if a corporation buys municipal bonds, do they have to pay federal income tax on the interest? And do they have to pay state income tax on the interest? Thank you advance for your generous help.
Asked by tzs - Mon Dec 18 22:31:20 2006 - - 4 Answers - 0 Comments

A. It depends on the bond. Check with the broker to get details on how much is tax-exempt. Regardless of the filing entity, tax treatment will be the same. Another words, if an individual is exepmt, Corps, P-ships, and trusts are also exempt.
Answered by KillerKat - Mon Dec 18 22:38:58 2006

What type of corporation should a touring singer who has to 1099 band members start?
Q. My husband is a singer who is currently touring. He needs to incorporate to keep himself out of full tax liability b/c he is paying his band and agent out of the gross amount being "paid" to him from the venues. What type of corporation do singers generally set up?
Asked by sum - Wed Jan 28 11:56:36 2009 - - 1 Answers - 0 Comments

A. LLC= Limited Liability Company
Answered by P. - Wed Jan 28 12:06:24 2009

How does one go about selling stock in a new, private corporation ?
Q. When forming a new corporation, I want to know how to sell stock of that corporation to raise capital to grow the business. This is possible for a brand new company, right? Or must it be established in order to sell stock? (I'm sure that'd help, but it's not necessity is it?) I know it requires finding private investors to purchase the stock, but primarily what I want to know is how to go about setting things up to do that. I have several ideas for businesses that I want to start, but I don't have the capital to do it. I was thinking I could start a corporation to house these various businesses, and sell stock in said corporation to raise funds for those businesses. Thank you for your time.
Asked by JB - Thu Jun 28 10:55:37 2007 - - 3 Answers - 0 Comments

A. You hand out Private Placement Offering documents to potential investors. At my company, it was a fairly long legal document and it explained that the investment was for a PPO and not a public company, yada yada yada. I think lawyers and accountants probably know how to draft these. But once it's made, you just make copies and hand them out. Then, if someone decides to invest, you have a book of stock certificates. You make out their certificate for the amount they are investing (how much stock they will own) and you have to do some other paperwork and keep track of all this. When it's tax time, you have to inform the investors if you had a loss or a gain and there are tax forms you have to send out to everyone. Good luck! :)
Answered by searching_please - Thu Jun 28 11:06:30 2007

What rights does a secretary of a corporation have compared to the president?
Q. If the secretary of a corporation is able to sign checks? Doesn't that mean that individual has the rights to all property owned by that corporation? She is a signer on the checking account.
Asked by nb - Sat Sep 12 22:55:45 2009 - - 1 Answers - 0 Comments

A. Generally speaking, the secretary's responsibilities are limited. Typically responsible for maintaining corporate documentation, details of meeting, etc. Might sign checks if approved by the board of directors. Only has right to sell property is that responsibility is granted...like signing checks. Can do it but not automatic
Answered by jwishz - Mon Sep 14 23:35:40 2009

How long before a C Corporation expires from the date it was established?
Q. I received a Statement of Information from Corporate Filing Unit (California) and required me to fill out this form and pay $225.00. I am not currently in business but do i require to fill this out and pay? What happens if i don't? Can I ask them to waive the fee and still keep the corporation? I might go back to business early next year?
Asked by windsurf572 - Thu Nov 19 03:34:02 2009 - - 2 Answers - 0 Comments

A. Corporate Filing Unit (California) is a FRAUD- do not send them any money-- the State of CA is currently SUING them. the current fee is $20 and form should have official state seal in upper left corner..
Answered by Carolyn - Thu Nov 19 16:33:11 2009

What is the difference between a corporation and incorporated?
Q. I'm starting a nonprofit organization and I don't know whether it should be a corporation or incorporated.
Asked by My Place - Sat Oct 31 12:22:50 2009 - - 2 Answers - 0 Comments

A. They mean the same thing. A business that is incorporated is called a Corporation
Answered by Ryan M - Sat Oct 31 12:38:05 2009

How is limiting the scope and power of a corporation limiting freedom of the individual?
Q. Contemporary conservatism, and more to the point, its pundits, upholds that just about any government regulation is somehow an affront to freedom. Really though, when our nation was founded, no one could have predicted the scope, wealth, and power corporations would gain in America. An individual, rarely, has the ability or wealth, to stand on principle against a corporation. Is it not essential for the people, through acts by Congress, to seek justice, and planning for the greater good, through regulation? What do you think?
Asked by alphabetsoup2 - Wed Aug 13 09:51:03 2008 - - 4 Answers - 0 Comments

A. The scope of government regarding corporations should be limited to the following. Fair and equitable taxation. Preventing monopolies from forming. Ensuring compliance with laws and regulations (environmental, consumer protection, labor standards, etc.) However this is not what most corporate detractors desire. They detest successful entities purely for their success, while harboring the misgotten impression that corporations are the cause all suffering in our society. They carry this belief to the extreme by proposing and supporting government sponsored robbery of profits based solely on their desire to punish those entities which they don't agree with. I am not against reasonable oversight by government in all things, but few things… [cont.]
Answered by Bryan - Wed Aug 13 10:02:51 2008

How do i increase the number of shares my corporation is authorized to issue?
Q. My corporation is a C corp in Idaho. I am currently the only owner. The number of shares I'm authorized to issue is 20,000. I need to increase the number of shares my corporation is authorized to issue so that I can sell my shares for less. What forms to I need to file and what wording should i use to do this?
Asked by Mike E - Thu Jul 12 18:32:25 2007 - - 2 Answers - 0 Comments

A. You can file an amendment to increase the authorized number of shares in your articles of corporation, which you should have filed in the state of Idaho. If you have lost your copy of your articles, they are on file with the state and can be ordered. There is no legal restriction on how much you charge for your shares so unless the issue is you want to sell in smaller denominations so that you raise more money selling a smaller stake of your company, such an amendment should not be necessary. Also remember in terms of determining voting strength that voting is determined in respect of shares outstanding, not shares authorized. So, for instance if you have 20,000 shares authorized and you've issued yourself 5,000 shares and you then… [cont.]
Answered by Bronzebeardanswerer - Thu Jul 12 20:42:59 2007

What does my corporation have to file for tax purposes?
Q. My 2 business partners and I set up a corporation last December (2007). We all injected capital from our own sources. We have not had $1 of income this year, 2008 and won't for the rest of the year. What do I need to file as far as taxes are concerned? We are set up as a corporation in Florida and taxed as an LLC in Florida. Thanks for your help.
Asked by Redcat23 - Mon Nov 17 10:19:12 2008 - - 1 Answers - 0 Comments

What do you call it in accounting when a shareholder loans the Corporation money?
Q. I own a Corporation, being the sole shareholder. I have loaned the Corporation money. What is this called in accounting when I do the books? I know a shareholder loan is when the Corporation loans money to the shareholder. I think, possibly it is capital or equity, but I could be wrong. And does anyone know what ledger number it is given. I believe it goes in the 3000's. Are there any accountants or bookkeepers out there that can shed some light on this?
Asked by LTigerRay - Sat Jul 14 22:52:56 2007 - - 2 Answers - 0 Comments

A. I'll take your word that you're the sole shareholder in a corporation and not a sole-proprietor in a sole-proprietorship. If you lend the co. money, it's a shareholder loan under current liabilities. The a/cs code depends on your chart of a/cs. It's equity only if you issued shares to yourself. Otherwise it's just a shareholder's loan. This is a more flexible arrangement cos you can repay yourself the loan when the co. has the funds. If you issue yourself shares you can't cancel the share and take back the money without going thru a lot of hassle.
Answered by Sandy - Sun Jul 15 02:15:02 2007

How many signatures are required for a corporation to sell property?
Q. This is a private corporation, owned by 3 individuals. It is located in Ohio. When the property was bought, only 1 signed the contract and now the property needs to be sold. Can 1 or 2 of the owners sign or does it have to be all 3 of them?
Asked by Walk by Faith - Mon Jun 1 09:04:23 2009 - - 1 Answers - 0 Comments

A. One signature is sufficient.
Answered by magi - Tue Jun 2 00:47:22 2009

How exactly is a corporation taxed?
Q. A distinct feature of the corporate business model is that they're taxed "as a corporation." What exactly does that mean? What are the details of being taxed as a corporation? Please cite your answers if you want to be rated as a best answer. A distinct feature of the corporate business model is that they're taxed "as a corporation." What exactly does that mean? What are the details of being taxed as a corporation? I'm looking for tax on a federal level. Please cite your answers if you want to be rated as a best answer.
Asked by stebbinsd - Thu May 22 20:10:03 2008 - - 2 Answers - 0 Comments

A. They're taxed on their net income, at the corporate tax rates, assuming that you are talking about a C-Corp. See the instructions for Form 1120 on the IRS website. An S-Corp is a pass-through entity; the net income passes to the personal tax returns of the shareholders via Schedule K-1 in the same proportion as their ownership in the Corp and in the same classification as the income, i.e. ordinary income, capital gains, dividends and interest, etc. See the instructions for Form 1120-S on the IRS website.
Answered by Bostonian In MO - Thu May 22 20:19:34 2008

How has the creation of the Microsoft Corporation influenced the world?
Q. I am writing an paper for an English final and I need to know if i have covered everything in this particular subject. Aside from the obvious reasons (which you can also answer), how else has the Microsoft Corporation influenced/changed the world's history? I just need to make sure that I have covered all the basis. Thanks in advance for the help. -D
Asked by AHYEM 16 - Mon Apr 6 20:40:20 2009 - - 1 Answers - 0 Comments

A. Here's some basics. Just like that of a manual transmission, the automatic transmission s primary job is to allow the engine to operate in its narrow range of speeds while providing a wide range of output speeds. Without a transmission, cars would be limited to one gear ratio, and that ratio would have to be selected to allow the car to travel at the desired top speed. If you wanted a top speed of 80 mph (130 km/h elsewhere), then the gear ratio would be similar to fourth gear in most manual transmission cars. You ve probably never tried driving a manual transmission car using only fourth gear. If you did, you would quickly find out that you had almost no acceleration when starting out, and at high speeds, the engine would be screaming… [cont.]
Answered by Jose - Tue Apr 7 07:45:05 2009

Are stockholders in a corporation personally liable for the debts of the corporation?
Q. I was just wondering it they are reliable for the debts of the corporation or just their shares of stock.
Asked by Alison L - Fri Sep 5 12:12:55 2008 - - 6 Answers - 0 Comments

A. A corporation is legally an artificial person. It is responsible for its own debts. In rare cases, stockholders can be held liable (this is called 'piercing the corporate veil') but something *very* unusual would have to happen. For example, if you created a sham corporation that you owned 100% of and that served no purpose other than to allow you to borrow money you never intended to pay back. If you simply buy a small amount of stock in a corporation, you cannot be held personally liable for the corporation's acts, omissions, or debts.
Answered by JoelKatz - Fri Sep 5 12:22:23 2008

When is the right time for a corporation to issue dividends?
Q. Some says that dividend payment does not matter at all, is it true? Or, there are instances when dividend payment is beneficial for the corporation?
Asked by Mr. President - Thu Mar 6 09:10:24 2008 - - 1 Answers - 0 Comments

A. Assuming the corp. has issued a class of stock shares that include dividends, first check to see whether the Corp.'s By-Laws covers this issue. If it is at the discretion of the bd. of directors, it would be wiser to issue dividends early in the calendar year so that stockholders can determine how to plan their personal income strategies for their next tax return. Depending on the size of the dividend, issuing a dividend late in the year may be disadvantageous to stockholders who may be put in a position of paying higher taxes due to the inability to acquire sufficient "loses" to set off the dividend gain.
Answered by Phil D - Thu Mar 6 09:33:32 2008

When is the right time for a corporation to declare and pay dividends?
Q. Some says that dividend payment does not matter at all, is it true? Or, there are instances when dividend payment is beneficial for the corporation?
Asked by Mr. President - Thu Mar 6 09:11:18 2008 - - 1 Answers - 0 Comments

A. Dividends are paid to those that actually own the company. The stock holders or any other way they have invested their money in hopes of getting a return and profit. Dividends are very important to many people. Many of us would have nothing to live on if we did not get dividends.
Answered by minus - Thu Mar 6 09:17:44 2008

What is the advantage of taking a corporation and dividing it up into multiple businesses?
Q. An example is you have a dairy farm. The dairy farm produces milk, grain, and maintenance. Right now the dairy farm is an S Corporation. You can divide up the farm where the milk and grain are their own entity. In result the dairy would buy the feed from the grain side. What would be the advantage of creating multiple businesses from this, or otherwise known as enterprising.
Asked by Durf - Thu Feb 18 12:08:55 2010 - - 3 Answers - 0 Comments

A. Depending on the size of your company it is wise to divide. For one the liability with labor, also when you are doing your taxes there is more room to fudge numbers and write things off. If the corporation is not large enough the extra work (paperwork) will exceed the gains from separation.
Answered by John Doe - Thu Feb 18 12:40:23 2010

How can I recover a judement from an officer or founder of a corporation that was administratively dissolved?
Q. I won a default judgement several months ago against a Tennesee corporation that never paid a dime. Now I find out on the Tenn. Secretary of State website that the corporation was administratively dissolved, and its assets liquidated. How do I recover the judgement? Can I recover it from the "owner" of the corporation (CEO)? or am I dead in the water?
Asked by xtaticlyme - Sun Sep 2 14:57:02 2007 - - 3 Answers - 0 Comments

A. Admistrative dissolution is not Bankruptcy, it means the state disolved their corporate standing them for other reasons, such as not paying their annual franchise fee or filing an annual report. An administrative dissolution does not mean the assetts were liquidated, so I assume you got that information from somewhere else. They can have their corporate standing reinstated. The state corporation laws, protect sharedholders and the board of directors and other employee's from liability of the corporation. That is why they incorporate. You would not want to be held liable for IBM's debts just because you bought IBM stock. The exception is where the director(s) knowlingly acted against the interests of the corporation, or to cheat or… [cont.]
Answered by Feeling Mutual - Sun Sep 2 18:26:09 2007

What are the tax implications to my Canadian corporation if I live outside Canada?
Q. I have been a Canadian resident and own a Canadian corporation. Now, I am getting to my retirement age, and wish to live somewhere outside Canada where the climate is warm and no snow. I would ask my son-in-law to take care of my business when I live south.
Asked by DE - Fri Nov 21 19:55:54 2008 - - 1 Answers - 0 Comments

A. If you temporarily live outside canada, but stay in canad majority of time, and remain a canadian resident, there is no tax implications. On the other hand, if you cut off all your canadian ties (without a cdn home, without social ties, and moving all your bank accounts down to where u live, etc), you may be considered as a cdn non resident. As such, your cdn coroporation may no longer be eligible for the cdn small business deduction, and there may be a deemed disposition of your shares of your corporation upon your leaving canada. Selling your shares while a cdn resident may allow you to have the tax exempt capital gains up to $500K on selling the shares. You should seek tax advice before you move south permanently.
Answered by T E - Sat Nov 22 12:12:07 2008