The Real Estate Encyclopedia
What is a Corporation?
Category - Professional Development - Become a Real Estate Agent

The corporate structure is somewhat more complex and expensive than most other business structures. Because a corporation is an independent legal entity, separate from its owners, it requires complying with more regulations and tax requirements. The biggest advantage to the small business owner is liability protection.

A corporationís debt is not considered the debt of its owner(s), so you do not put your personal assets at risk under this approach. In addition, a corporation can retain some of its profits, without the owner paying tax on them.

Another advantage of the corporation is its ability to raise money by selling stocks, either common or preferred. Corporations also continue indefinitely, even if one of the shareholders dies sells the shares or becomes disabled.

Your best bet is to consult an attorney, before making your decision on how to incorporate your business.



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Professional Development - Become a Real Estate Agent
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