Corporations

A corporation is a business entity that is separate and independent of its owners. The owners, or stockholders, elect a board of directors who manage the corporation. The board of directors is responsible for appointing the officers who run the corporation's daily business. There are different types of corporations such as the Subchapter C corporation, ("C corporation"), the Subchapter S corporation, ("S corporation"), and the personal services corporation. Not all states recognize the various types of corporations. For tax purposes, the IRS treats all corporations as either C corporations or S corporations.