| General Company
| · The limitation of every stockholder’s responsibility, as he/she is only responsible for the amount of his/her investment
· Continuity, because a corporation doesn’t die with the death of the founder or partner and ownership rights can be easily passed on to other people
· The opportunity of organizing a network of associated corporations which share functions among them
· The financial power to research, develop and produce new goods
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| Publicly-held Company
| · Public investors
· Profits generally distributed as dividends
· Formed under general incorporation statutes
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| Close Company
| · Small group of investors
· Earnings often reinvested
· Greater management flexibility is permitted
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| Limited Liability Company
| · Lower tax rate on profits retained in business
· Shareholders’ liability limited to the amount of contributed capital
· Ideal form of expansion
· Protection of companies’ names
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| Unlimited Liability Company
| · Pay corporate tax instead of income tax
· Higher confidence from suppliers and bankers; easier to raise finance for the business
· Unlimited liability
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| Government Company
| · Examples: city, school corporation
· Generally don't seek profit
· Often have power to tax
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| Nonprofit Company
| · Examples: hospital, club
· Not permitted to make profit
· Members may draw salaries
· Incorporated under special statute
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