Week 3 DQ 1

Why does a company choose to form as a corporation? What are the steps required to become a corporation? What are the advantages and disadvantages of the corporate form of doing business?

A company might choose to form as a corporation, because of owner protection from legal liability, ability to attract investors, corporate framework/power structure, and stock and stock options for employees. The usual steps required in becoming a corporation include: having a name for your business, preparing and filing the required paperwork with the Secretary of State in the state of incorporation, paying the required filing fees, choosing a board of directors and adopting corporate bylaws, and authorizing the board of directors and officers of the company to conduct business and conduct...