ABSTRACT
Having a solid business structure and platform is the underlying foundation of any company. A corporation is defined as a legal entity or structure created under the authority of a state's laws, consisting of a person or group of persons who become shareholders. The entity's existence is considered separate and distinct from that of its members. Since a corporation is a separate legal entity, it pays taxes separate and apart from its owners. Owners of a corporation only pay taxes on corporate profits paid to them in the form of salaries, bonuses and dividends. A business owner who works in his or her own business may become an employee and thus be eligible for reimbursement or deduction of many types of expenses, including health and life insurance. Corporations have a set management structure. The owners of a corporation are shareholders, who elect a board of directors, which then elects the officers.
