One of the most advantageous ways to start a small business, a Corporation IS a business entity that is separate and apart from its owners. With some exceptions, such as the right to vote in national and local elections, a Corporation has many of the same rights as an individual or a natural person. Through filings at the state level and the receipt of a charter, Corporations exist through properly filed Articles of Incorporation.
Because the business is distinguishable from the stockholders, the Corporation secures licensing in its own name, the same with contracts, bank accounts, and debt accounts. As such, if the Corporation runs into financial trouble, the stockholders have limited liability to the debts of the corporation - - - limited only to the amount they have invested in the Corporation.
Corporations often are organized with three levels: the Board of Directors (Trustees), the Officers, and the Stockholders (stakeholders). The stockholders (also known as stakeholders) are the investors and owners in the Corporation. The Officers handle the day-to-day affairs of the Corporation. The Board of Directors (often called Trustees in a non-profit corporation), is the highest management authority in the corporation. The Board of Directors are responsible for approving annual budgets, acquire financial resources, select and appoint the chief execute and other office positions, govern and establish broad policies and objectives, set salaries, and account to the stockholders.