Business Structures: Corporation

With the "C" corporation structure, all income goes to the corporation and dividends are paid to the stockholders of the corporation.

What Is Good about This Business Structure:

• Life of corporation is perpetual.
• Stockholders have limited liability.
• Transfer of ownership is easy (sell stock).
• Management may be more efficient.

What Is Bad about this Business Structure:

• Subject to special taxation.
• Cost more to organize.
• Subject to state and federal controls.
• Charter may restrict type of business activities.

In the sub "S" corporation structure, income is taxed similiar to the partnership and all income and expenses are divided among the shareholders who report it on their individual income tax returns.

For more information about business structures, bookkeeping methods and taxation, the Oklahoma Tax Commission offers Business Tax Workshops. Make your reservation today!