What is a Corporation?

In our previous article blog “Set Up a Business for Liability Protection” we reviewed liability protection with corporations and limited liability companies (LLC). In upcoming blogs we will review doing business as (DBA) and limited liability company (LLC). This blog is on corporations.

A corporation is considered a separate entity. This provides liability protection from the owners. The owners own stock in the corporation and are considered shareholders. The corporation is set up by filing Articles of Incorporation with the State of Michigan. The corporation then needs to be properly set up by establishing Board of Directors, corporate officers, corporate shareholders, corporate resolutions, and corporate bylaws. Typically, you need the help of an attorney to establish a corporation.

Click here to learn more about corporation types (C Corp and S Corp) and operating formalities