Essay on Limited Liability Company and Annual Shareholders Meetings

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Structures of a Corporation
Ana Solaya
ACCT210
Francis Hoban
January 25, 2015
American Intercontinental University

Structures of a Corporation In the business world, the three types of organizations are sole proprietorships, partnerships and corporations. Corporations are usually large company, but there are also small organizations them. Unique and associations can be incorporated owners even if they feel they will benefit, including the possibility of paying fewer taxes or seek protection from creditors. Corporate structures are divided into: C corporations, S corporations and LLCs.
The C corporation also called corporation generally is used by large companies and capital obtained from the sale of shares, so that its shareholders are the owners of the company. Senior executives of the corporation, as the Chief Executive Officer or company spokesperson (CEO) and President will report to a board of directors, which helps define the corporate policy and direction. The corporation is taxed as a separate entity and owners of the company must also pay taxes on their personal income. Companies have the obligation to hold annual meetings of shareholders and create and distribute annual reports to shareholders, while S corporations are used in smaller companies. Like C corporations, S corporations increase capital through the sale of shares, unlike that merely has a maximum of 75 shareholders. They are also limited to selling only one type of shares. Gains and losses incurred by S corporations are considered personal income or loss for its shareholders, and are included when they file their income taxes. Thus, homeowners avoid double taxation of corporate owners C. S Corporations may have difficulty obtaining capital because of the limited number of shareholders and the types of actions. Like C corporations, S corporations must also hold annual shareholders meetings. Finally, the limited liability companies or LLC are often used by individual entrepreneurs or companies that want to merge. LLCs have more advantage for these smaller entities because owners are responsible for their own investment in the corporation. Creditors cannot complain about their personal assets to satisfy a legal obligation or debt. These corporations also taxed on a personal basis to avoid double taxation. State law limits the life of the LLC, most states limiting them to 30 years. Limited liability companies cannot raise capital by selling shares as the others. Twitter VS Microsoft In the past 22 July 2014 the company Microsoft Corp. reached the $ 23.38 billion for the fourth quarter that ended in late July 2014. The gross margin, operating income and diluted earnings per share ("EPS") for this quarter rose from $ 15.79 billion, $ 6.48 billion and $ 0.55 per share, respectively. This company made the acquisition of almost all Nokia devices and services ("NDS") business on April 25 last year. Income and expenses from income the company obtained also the amortization of intangible assets are reported in the new phone hardware segment. For the fourth quarter and fiscal year 2014 results NDS contributed revenue, gross margin, operating income and diluted EPS at $ 1.99 billion $ 54
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