corporation

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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 ?
On the other hand, a U.S. corporation that sells its shares of foreign corporation stock will generally be subject to corporate tax of twenty-one percent on the gain from such sale.
It is often reported in the media that U.S. corporations invert in order to reduce their global corporate tax obligation and to access more of their overseas profits.
The question becomes whether the U.S. corporation must recapture another $5 million as the branch loss recapture.
Under the U.S.-Country, N income tax treaty dividends paid by a Country N corporation to a U.S. corporation qualify for a reduced withholding tax rate.
generally taxes the income of U.S. corporations from both domestic and foreign sources.
A U.S. corporation prohibited from involvement in a transaction cannot refer the business to its overseas branch, because the branch is subject to the U.S.
The legislation has three sections: Section 1 addresses "competitiveness" issues; Section 2 deals with corporate inversions, which occur when a U.S. corporation decides to reincorporate in an offshore tax haven; and Section 3 covers tax shelters.
The Service has issued a revised, draft version of Schedule M-3 of Form 1120, U.S. Corporation Income Tax Return, to allow taxpayers to take a manufacturing deduction and interest expenses into account.
This change exponentially increased a U.S. corporation's administrative burdens in respect of translating foreign taxes.
In addition, the fact that a U.S. corporation has a Canadian subsidiary that carries on business there via a PE will not result in the U.S.
If a U.S. corporation makes a charitable contribution to a U.S.-based charity for use in the United States, the factual connection between the contribution and U.S.-source gross income is palpable.
Commissioner (56 TC 925 [1972]) when it reclassified interest payments made by Aiken, a U.S. corporation, to a related entity resident in a treaty country.