What are the different forms of ownership in a corporation?

In Washington, there are several different forms of ownership in a corporation. The most common is the C Corporation, also known as the regular corporation. This type of ownership is popular because it allows the corporation to have shareholders, a board of directors, and officers. In a C Corporation, there is limited liability protection for shareholders, meaning the shareholders cannot be held liable for the actions of the corporation. Another option is the S Corporation. In this type of ownership, shareholders are treated similarly to C Corporations, but the profits and losses of the corporation are passed through directly to the individual shareholders. This means that each shareholder is responsible for paying taxes on their share of the corporation’s income. The third type of ownership is the Limited Liability Corporation, or LLC. This form of ownership is the least complex and offers the most flexibility in terms of profit and loss distribution. LLCs combine the limited liability protection of a C Corporation and the pass-through tax structure of an S Corporation. Finally, there is the sole proprietorship. This type of ownership is the simplest and the least formal. It is typically used for businesses owned by one person and can be used for small or large businesses. There is no board of directors, no shareholders, and all profits and losses are reported on the owner’s personal tax return. However, this type of ownership does offer the least liability protection.

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What are the different forms of ownership in a corporation?

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