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

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

item of ownership having an exchange value

money or debt owed

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

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

made up of social security taxes and Medicare taxes

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

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

an entity which is controlled by another entity (or parent company)

outstanding capital of a company or corporation

fall under either a C corporation, an S corporation or a partnership depending on how it decides to be treated for taxation when it is first formed; are treated as a separate legal entity from its owners (members) just like in a corporation