when a group of people form a business or organization and have rights and liabilities separate from the individuals involved

• Corporation

• Shareholder

• Asset

• Liability

most widely used form of business in the world; treated as separate legal entities from its shareholders, so they have the ability to sue or be sued, are capable of holding assets in its own name, can sign contracts and have the ability to make by-laws, which govern its internal affairs

• Shareholder

• C Corporation

• Corporation

• S Corporation

any person, company or other institution which owns at least one share in a company (also known as a stockholder)

• Shareholder

• C Corporation

• Corporation

• S Corporation

item of ownership having an exchange value

• Asset

• Liability

• Shareholder

• Medicare Tax

money or debt owed

• Asset

• Liability

• Shareholder

• Medicare Tax

when a corporation makes a profit, it pays a federal corporate income tax on it, and then if the company declares a dividend, the stockholders must report it is personal income and pay more taxes

• Double Taxation

• Liability

• Asset

• FICA Taxes

general corporations which have elected a special tax status with the IRS after the corporation has been formed; most appropriate for small business owners and entrepreneurs who prefer to be taxed as if they were still sole proprietors or partners

• Shareholder

• C Corporation

• Corporation

• S Corporation

made up of social security taxes and Medicare taxes

• Double Taxation

• Liability

• Asset

• FICA Taxes

provides benefits for certain retired, disabled or deceased workers and their families

• Liability

• S Corporation

• Medicare Tax

• Social Security Tax

pays for the medical expenses of most people over the age of 65

• Liability

• S Corporation

• Medicare Tax

• Social Security Tax