Tashkent financial institute department of finance from "finance"

While "corporation" is sometimes used to describe a large business, a true corporation is a company that has gone through the process of incorporating. A corporation has some pros and cons relative to other business structures. The business is treated as a separate entity from its owners, a status that confers certain rights on the corporation.

For example, corporate owners and shareholder avoid personal liability for the business's debts, a legal form of protection that is not available to some other types of businesses, like sole proprietorship. Corporations can also bring lawsuits in the corporation name, rather than by an individual filing the suit. One drawback of becoming a corporation is that company pay corporate taxes plus individual taxes on the dividends company receive on company earnings

From a legal standpoint, corporations are easy to form and only have a small number of mandatory requirements. A corporation must register in a state (not necessarily its state of business, though) and must identify its key executives. A corporation must also have an address or agent on file for the serving of legal papers.