Allen James

Corporation

            My choice is a corporation.  I choose a corporation because it is pretty easy to start.  There is a little more paperwork but it doesn’t matter.  All I need to do is get a little investment.  I could get some friends to invest and insure them that it is a right choice.

            Some advantages is that a corporation is defined as a legal entity or structure created under the authority of a state’s laws, consisting of a person or group of persons who become shareholders.  One of the key reasons for forming a corporation is the limited liability protection provided to its owners.  Because a corporation is considered a separate legal entity, the shareholders have limited liability for the corporation’s debts. The personal assets of shareholders are not at risk for satisfying corporate debts or liabilities.

                Some disadvantages are it costs money to incorporate. There are four types of fees: a fee to file the Articles of Incorporation with the Secretary of State, a first-year franchise tax prepayment, fees for various governmental filings, and attorneys’ fees. But every year, tens of thousands of businesses choose to incorporate online without the use of an attorney.