What is a corporation?

Most businesses start as a small company is one of a person or an association. The most common type of business, if there are multiple owners is a limited company. The law considers a society like a real person, live. As an adult, a corporation, a separate and independent person who has rights and obligations is considered. "Birth certificate" a company is the legal form which is filed with the Secretary of the State where the company is incorporated, or incorporated. You must have a legal name, as a person.

A corporation is separate from its owners. Responsible for their own debts. The bank can not come to shareholders if a company goes bankrupt.

A company that issues ownership for people who invest money in companies. These shares were the property of share certificates documenting what in the name of the owner and the number of shares held. The Company shall keep a register, or a list of how many people will be divided. The owners of a company are called shareholders, issued the shares of the Company's shares. Part of the measure is a unit of property that is in the action depends on the total number of shares as business questions. the largest number of shares of a series of business questions, the percentage of total assets "represents each share.

Shares come in different share classes. Holders of preferred shares are promised a certain amount of cash dividends each year. Common shareholders have the greatest risk. If a company ends in financial difficulty is required to pay its debts first. If all the money left over, then the money goes first to the holders of preferred shares. If there is something later, then that money distributed to shareholders.