corporation

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Related to Corporations: Multinational corporations

Corporation

A legal entity that is separate and distinct from its owners. A corporation is allowed to own assets, incur liabilities, and sell securities, among other things.

Corporation

A business that is legally completely separate from its owners. Most publicly-traded companies (and all major ones) fall under this classification. For United States tax purposes, corporations, legally known as C corporations, are required to pay income taxes on their profits. The advantage to a corporate structure is the fact that, unlike other structures, there is no limit to the number of shareholders. A disadvantage is the fact that, because a corporation is taxed by itself and its individual shareholders are taxed on dividends, it is subject to double taxation. It is important to note that the term corporation almost never refers to an S corporation, which is not entirely separate from its owners.

corporation

An organized body, especially a business, that has been granted a state charter recognizing it as a separate legal entity having its own rights, privileges, and liabilities distinct from those of the individuals within the entity. A corporation can acquire assets, enter into contracts, sue or be sued, and pay taxes in its own name. Corporations issue shares of stock to individuals supplying ownership capital and issue bonds to individuals lending money to the business. The corporation is a desirable organization for a business entity for a variety of reasons including the increased capability such an entity has to raise capital. Most large firms, especially those engaged in manufacturing, are organized as corporations. All stocks sold in the primary market and traded in the secondary market are shares of corporate ownership. Compare partnership, proprietorship. See also incorporate, limited liability, unlimited liability.

corporation

a North American term for a JOINT-STOCK COMPANY.

corporation

  1. 1a private enterprise FIRM incorporated in the form of a JOINT-STOCK COMPANY.
  2. a publicly owned business such as a nationalized industry.

corporation

 A legal entity created by filing documents with the local secretary of state, commissioner of corporations,or similar official. It may have as few as one shareholder,must begin life with some minimal amount of assets gained as a result of the shareholder(s) paying for shares of stock, may be stipulated as having a limited life span or perpetual existence until formally dissolved, and may be designated as having the powers to do only limited types of things or anything allowed by law.The entity thus created will enjoy all the rights and responsibilities of natural persons,including owning and renting real estate,and suing or being sued in the courts.The IRS allows corporations to be segregated into three main types for tax accounting purposes:

1. S-corporation. A small corporation that is allowed to file information returns only. It pays
     no taxes on its income but, instead, sees all income taxed to the shareholders according to
     their pro rata share of the corporation.

2. C-corporation. Any corporation that does not meet the limitations for an S-corporation,
     or one that otherwise qualifies for S-corporation status but elects to be treated as a C-cor-
     poration. The corporation files its own tax returns, pays taxes on income, and then dis-
     tributes dividends to shareholders who pay taxes on the dividends.

3.501(c)(3) corporation. A not-for-profit corporation authorized by Section 501(c)(3) of the
     Internal Revenue Code, which files an information tax return but pays no taxes.

Corporation

For income tax purposes, an entity that is incorporated under the laws of a state, a foreign entity that is treated as a corporation under IRS regulations, or an unincorporated entity that elects to be taxed as a corporation by filing Form 8832.
References in periodicals archive ?
However, it appears that this safe-harbor test can be particularly difficult to meet by large multinational corporations with a global presence.
7874; such partnerships are treated as foreign corporations and EAG members for purposes of determining the existence of a surrogate foreign corporation; see Temp.
At the same time, corporations are showing a degree of raw aggression that is unsettling to say the least.
Moreover, the company said the Alabama domestic shares tax--which foreign corporations do not pay--did not offset the discrimination resulting from the foreign corporation franchise tax.
Moreover, in the case of related corporations, the transfer of a note can be structured to produce state tax savings (particularly in non-unitary jurisdictions) by shifting income from one corporation to another.
The Corporation and Cannasat entered into an amalgamation agreement (the "Amalgamation Agreement") to continue as one corporation under the Business Corporations Act (Canada) with the name "Cannasat Therapeutics Inc.
Thus, certain financial institutions that use the reserve method of accounting for bad debts, insurance companies, domestic international sales corporations (DISCs) and former DISCs, are not eligible for QSub status.
Since the SBJPA, the IRS has issued guidance on when corporations can request automatic relief for such "late" S elections:
Since the repeal of the General Utilities doctrine in 1986,(1)(*) one of the only ways in which corporations may distribute appreciated property to their shareholders without recognizing corporate-level gain is through the use of spin-off type transactions under section 355 of the Internal Revenue Code.
Earlier that day, a council of Alaska native leaders had agreed to a plan that Johnson hoped would shore up dozens of native corporations teetering on the verge of bankruptcy.
Today, over 24 percent of eligible financial institutions are S Corporations.
According to the latest IRS Statistics of Income report, (48) S corporations continue to grow as the most common form of doing business.