CORPORATIONS
01.Core Concepts
Disadvantages Advantages Potential for double taxation Relatively easy to: • Raise capital • Transfer ownership interest Administrative burdens Shareholders have limited liability More difficult to form Unlimited life Dissolution can cause taxable event More extensive management resources Borrowing may be difficult without stockholder personal guarantees Shareholder/employees may receive the full array of employer-provided tax-free fringe benefits Requires a registered agent Requires a federal tax ID number