What is Corporation?
Definition
A corporation is a legal entity that is completely separate from its owners (shareholders) under the law. It is formed by filing articles of incorporation with the Secretary of State and is governed by a board of directors. Corporations can be structured as C-Corps (subject to double taxation on profits and dividends) or can elect S-Corp status to pass income through to shareholders. Corporations are more complex to maintain than LLCs, requiring annual meetings, corporate minutes, and formal governance.
Real-World Example
A group of three co-founders files articles of incorporation in Delaware for their tech startup, planning to raise venture capital and eventually go public.
Why This Matters for Lead Generation
Corporation filings in formation data often indicate more serious, well-funded businesses compared to single-member LLCs. These leads are particularly valuable for CPAs (complex tax needs), insurance agents (higher coverage requirements), and business attorneys. A new corporation filing frequently signals a business with employees, investors, or plans to scale.
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