Wrong! Corporations have become the normal and usual way to set up a business because of lawyers and for no other reason.
In a way. true; but those lawyers were paid for by Karens.
Corporations provide several things that other business organizations do not:
* Ir provides a 'corporate veil', which means that if someone sues the corporation they cannot further attach any owner (stockholder) of said corporation, so long as the corporation conforms to the law.
* It is a convenient method of offering ownership shares to the public, so anyone can invest in that business. If the shares are not public, it provides a method of designating the distribution of shares among the owners, and how they can sell them or gift them to someone else.
* If provides a corporate constitution, which specifies how many share there are, whether the public can buy and sell them, what happens if the corporation dissolves, etc. This is often called the corporate charter.
* It provides a bookkeeping standard that allows all shareholders to understand what profit, if any, was made, and how it is to be distributed.
* Ir provides a tax entity. Taxes are paid out of the corporation directly, not by going through the owners. The owners pay their taxes on the profit they make when they sell their shares.
* It provides a common trust.
Type C is for large, publicly traded corporations.
Type S is for smaller, limited share corporations.
An LLC is one or a few individuals operating as a corporation.
Each has their own special accounting requirements and tax rules.
Subchapter S and LLCs are the most common type of corporations. Subchapter C are most noticeable, simply due to their size and complexity, and their publicly traded stock.
NONE are inherently evil. They are simply a way of organizing a business.
Corporations protect stockholders from personal lawsuits (typically filed by Karens). The Karen can only sue the corporation ittself.