All rights reserved. In any state or city there will be legal requirements and rules for starting and running a business. Some are important, others may be ignored. In some cases, cooperation with the government assures a smooth running business, while in others, it only assures continuing government interference. A corporation is a fictional legal person chartered by the state.
Corporations are subject to income and other taxes.
They then pay dividends to their stockholders who are taxed a second time on their profits. You'll probably need a lawyer's help to form a corporation. Unless you absolutely need to operate in the corporate form for tax or other legal reasons, it pays to save the expense of forming the corporation and put the money into the business instead. A partnership consists of two or more people operating as one legal entity. While the partners are only taxed on their income once, they have to complete considerable tax paperwork.