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disadvantage, advantages on corporations - Coggle Diagram
disadvantage
States have higher fees
Double taxation of corporation profits. The corporation pays federal and state taxes on its profits
More state and federal regulations and oversight
Forming a corporation costs more. Attorneys charge more to form a corporation
Limited liability of stockholders
advantages on corporations
easy availability of capitol
its easy to raise huge sums of capitol through the public
limited liability
The shareholders of a corporation are only liable up to the amount of their investments. The corporate entity shields them from any further liabilities ,so their personal assets are protected
ownership transfers
not difficult for a shareholder to sell shares in a corporation,though this is more difficult when the entity is privately held
perpetual life
there is no limit to the life of corporation since ownership of it can pass through many generations of investors
source of capitol
a particular advantage when it shares trade on a stock exchange ,where its easier to buy and sell .
