A type of business structure designed to separate the owners' legal and financial liability from that of the company. Unlike S Corporations where profits are taxed at the level of the shareholder, C Corps have their profit taxed at the corporate level...and again at the shareholder level after profits are distributed. Wait, why would a corporation want to be double-taxed? Well, it offers the most protection to stakeholders. If the corporation goes belly up, they're not on the hook. Most big corporations, like McDonald's, are C Corporations. It's the McCorporation Structure.
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Finance: What is a Corporation?89 Views
Finance a la shmoop what is a corporation? corp-o-ration.. [Mouth saying syllables of corporation]
see the Corp in there? well it's latin short for corpse or
body so a corporation may or may not be cold and covered with maggots [Man disguised as a corpse wakes up and screams]
corporations are just legal bodies they're generally set up so that
there's a clear legal distinction between things and individual does and
things that the company she works for does let's say you want to set up your [mime artists at the window of a shop]
own mime training studio brother can you spare a mime, but then you hit a wall
one of your mime trainees becomes badly injured while trying to get out of a [mime trainee gets injured while attempting to get out of a glass box]
glass box and you get sued you lose..wow you're totally speechless so your
corporation which was basically just you ten grand in the bank and a hat rack [Laptop showing $10.000 in the bank beside a hatrack]
full of berets well it loses everything you turn over your 10k to the sue-er
the one who sued you and you dust off your hands and move on try new venture [mime dusts off hands]
tapping into your prior experience as a mime therapist well legally the guy who
sued you while working for the corporation can't sue you personally
your $350,000 home is untouchable yeah who knew miming paid so well same deal [Mimes $350,000 home]
on that untouchable-ness of your Prius and the untouchable-ness of your
collection of invisible ropes, the legal body of the corporation threw itself on [Mime pretending to move along an invisible rope]
the landmine of your lawsuit and took the blow while you just walked away [Mime artist moon-walking off stage]
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