Corporation

= CORPORATION =

A corporation is a limited liability entity that has a separate legal personality from its members. A corporation can be organized for-profit or not-for-profit. A corporation is owned by multiple shareholders and is overseen by a board of directors, which hires the business's managerial staff. In addition to privately-owned corporate models, there are state-owned corporate models.

ADVANTAGES

 * Limited liability
 * Ownership is transferable
 * Continuous existence
 * Seperate legal entity
 * Easier to raise capital
 * Possible tax advantages as taxes may be lower for an incorporated business

DISADVANTAGES

 * A corporation is closely regulated
 * More expensive to incorporate than a partnership or sole proprietorship
 * Extensive corporate records required, including shareholder and director meetings, and documentation filed annually with the government
 * Possible conflict between shareholders and directors
 * Possible problem with residency of directors, if they are in another province or the majority are not Canadian