If you are a business owner and have had discussions with your banker, accountant, or attorney about incorporation, you may have heard the word "incorporation." If your business incorporates but doesn't sell shares of stock or raise capital via a crowd-funding venture on sites like Kickstarter or Indiegogo.
There are three main types of corporation-
- C corporation- A C corporation has just one shareholder with all profits going to that person and no taxes paid. To a C Corporation, the word "incorporation" just means a legal organization that is recognized as a business.
- S Corporation- S Corporations are formed in the same fashion as C Corporations, however they differ in terms of owner restrictions and tax implications.
- Non-Profit Corporation - Charitable, educational, and religious groups sometimes use it to function without making a profit.
