The document discusses different types of corporate ownership structures. It explains that a corporate structure separates the business as a distinct legal entity from its owners. It then describes some key features of corporate ownership including shareholders' rights, liability protection for owners, and that corporations can exist indefinitely unlike other business types. The document also outlines different types of corporations like S corporations and LLCs, and how they can be structured. It discusses important decisions around choosing a corporate structure and taxation implications. Finally, it briefly touches on the differences between public and private limited companies.

1. NAME
AFFAQ AKRAM

2. Corporate Ownership Structure
• What is the Corporate ownership Structure?
Corporate ownership can involve any number of
owners but it turns the business into a corporation,
which is a distinct legal entity. The business gets a
name and takes on many of the rights and
responsibilities that private individuals enjoy

3. Corporate Ownership Structure
• Ownership structure concerns the internal
organization of a business entity and the rights
and duties of the individuals holding a legal or
equitable interest in that business.
• As owner of the business entity, it is important
to understand how the ownership structure of a
particular business entity is organized and what
that means for the owner’s rights.

4. Corporate ownership
• Example:
A shareholder, as owner of a corporation, has
certain rights. These rights are distinct from
those of members of a limited liability company.
Further, within the corporation, a holder
of preferred stock may have different rights than
the holder of common stock

5. Corporate ownership
• Corporate ownership differs from other types of
business ownership.
• a corporate ownership structure allows the
business to last indefinitely.
• While other types of businesses disappear when
the owner or owners die

6. Corporate ownership
• Corporate ownership also protects owners'
liability; For example
if someone files a lawsuit against the business,
the owners aren't personally responsible and
their personal assets are protected.

7. Types
• Several types of corporations, each with its own features
besides a corporate ownership structure
• General corporation: most basic type, protecting
owners from liability
• S corporations may only have up to 75 owners (known
as shareholders) and enjoy special tax status from the
federal government.
• LLC, or limited liability company is a corporate
structure whereby the owners are not personally liable for
the company's debts or liabilities.

8. S Corporation and C Corporation
• There are significant differences in how the
corporations are taxed and how the ownership
can be structured.
• Depending on the income level and types of
shareholders in the business.

9. • C Corporation Taxation
The corporation itself pays taxes on its net income. If
shareholders want to get money out of a C corp, it must
be done by issuing dividends. The main drawback of C
corp taxation is that these dividends are taxed twice.
• S Corporation Taxation
S corporations are not subject to double taxation.
S corporations are a pass-through entity (special business
structure that is used to reduce the effects of double
taxation)
Although the owners still must file a tax return for the S
corporation, the company itself doesn't pay income taxes.

10. An important Decision
• A corporation's founders must choose an
ownership structure when they incorporate the
business in a given state. State tax codes and stock
exchanges treat each type of corporation
differently, so the decision is an important one.

11. Public Companies
• Not all businesses that use a corporate ownership
structure are publicly owned.
• a public company is one that sells ownership
shares on the open market through a stock
exchange.
• In these cases, the corporate ownership includes
everyone who owns stock in the company.

12. Cont..
• Each stockholder enjoys the liability protection of
the ownership structure and investors can become
owners without risking more than what they pay
for their shares.
• Some corporations never go public, instead using
corporate ownership to protect a smaller group of
owners who maintain control over the business.

13. Setting Company’s Structure
• When setting up a company, entrepreneurs and
future business owners have a few options in
regard to style and structure. Each has distinct
benefits and drawbacks for individuals.
• Two types of structures include
Public Limited Company
Private Limited Company

14. Public and a Private Limited Company
DEFINE
 Public limited companies: Two or more
individuals can start the company and sell
ownership shares to the general public.
A private limited company offers limited
liability to shareholders, who are generally few in
number, limits the number of shareholders to 50.

15. Features
A private limited company typically has more
restrictions than public limited companies.
These restrictions include:
• shareholders must offer their shares to other owners
prior to selling them openly;
• owners cannot sell shares through a stock exchange
• the number of shareholders may not usually exceed
50 in number

16. Significance
Creating a public limited company allows
business owners to generate capital through
selling shares, where as private companies are
unable to do so. However, the benefits of each is
the ability of individuals to limit or prohibit
personal liability from business activities.

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