Also, real estate deals can be structured as limited partnerships. Most small businesses have formed corporations during the past 10 years or so to obtain limited liability coverage. Forming a corporation has become very easy. Corporations must also hold at least one annual stockholders meeting and one board of directors meeting. For profit corporations can have one or more shareholders.
Many small businesses are one-person operations.
There are two types of for-profit corporations for tax purposes. While dividends are double taxed, you can load up on fringe benefit plans. Instead the shareholders receive a form K-1 allocating their share of profits to their personal tax returns. Inc. All rights reserved.