Definition:

• An artificial entity
• A charter granted by the state creates its’ legal existence
• Legal separation between the stockholders (owners) and the business of the corporation
• Stock is received by owners in exchange for money, property or services

Start-up:

• Articles of incorporation must be filed with the state, fees/expenses paid
• Bylaws and minutes of preliminary meetings must be drafted
• Corporation must obtain a FEIN (IRS Form SS-4)
• Stockholders elect directors to set corporation’s policies]
• Directors elect officers (president, secretary, treasurer etc.) to run corporation

More about taxation of corporations...