It requires the filing of organizational documents with the Corporations Division of the Secretary of State.
A corporation that is established legally by filing articles of incorporation. All of the Corporation's obligations and debts are taken on by the Corporation itself.
Shareholders are the owners of corporations. A shareholder is shielded from the corporation's obligations and responsibilities.
A corporation may apply for S Corporation classification for federal income tax purposes after submitting its articles of incorporation.
An S Corporation's income is only taxed once, either at the shareholder or employee level. The corporation must also meet additional requirements set forth by the Internal Revenue Service in order to qualify, including having no more than 75 stockholders.
In all other ways, an S-Corporation is regarded as a corporation and is not subject to any additional or unique filing obligations with the Secretary of State.
An LLC is a legal entity that blends the limited liability benefit of a corporation with the adaptability and sole taxation of a general partnership.
So instead of stockholders, an LLC has members. A member is shielded from the LLC's obligations and liabilities. An LLC should function under an Operating Agreement, which itself is similar to a Partnership Agreement, even though it is not needed by law.
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