Most people know the term, Corporation. There are two distinct types of corporations. The standard type is a "C" Corp. Articles of Incorporation must be filed with the "home state" of the corporation and stock must be issued to the founding investors. A board of directors must be elected, officers of the corporation must be elected and, then, employees are hired. There are also requirements for annual meetings, corporate minutes and obviously, good records.

An individual can be a stockholder, officer, director, and employee of the corporation. Each role wears a different hat and must act in certain ways to preserve the "corporate veil" and personal liability protection.

The single most beneficial reason for incorporating a business is the protection of personal assets. The C Corp files its own tax return and pays its own taxes on profits. The C Corp can only pass on "profits"/earnings to the stockholders as dividends, which are then taxable to the stockholders on their personal returns.  If the C Corp has losses, the losses stay with the corporation and if the corporation is terminated the losses die with the corporation.