During my workshop at the City of Nampa Economic Office that focused on business models, the last one and the one least discussed was the corporation. Reason? It’s the one that most of us will never reach in our business endeavors as it is used primarily for larger companies.
Like the LLC, the corporation stands on it’s own two feet. It is its own entity and when sued or considered liable, individuals within the corporation are safe from losing personal assets. The biggest difference between the corporation and the LLC is that the corporation is publically traded. Therefore, a corporation has the ability to generate vast amounts of money by offering more pieces of the pie, more stock, but it is beholden and accountable to it’s shareholders who will lose or gain money through depending on the profitability of the corporation.
A corporation must write up an operating agreement, hold regular meetings with documented minutes, and must have officers who hold specific jobs within the company who are often elected by the owners, the shareholders.