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Corporation
Corporations are created and regulated under corporate laws in their jurisdictions
of residence. In the United States, the most common type of corporation is a C
Corporation.
Becoming a Corporation
The process for forming a corporation varies according to the state you do
business in and the state you live in. For the most part, you'll need to file articles
of incorporation with the state, and then issue stock to the company's
shareholders. The shareholders will elect the board of directors in an annual
meeting.
The board of directors executes the corporation's business plan and must take all
the means to do so. Although the members of the board are not
generally responsible for the corporation's debts, they owe a duty of care to the
corporation and can incur personal liabilities if they neglect this duty. Some tax
statutes also provide for the personal liabilities of the board of directors.
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