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Incorporation

1.	Definition of a Corporation
2.	Reasons to Form a Corporation
3.	Two Types of Corporations
4.	Tax Advantages of Corporations
5.	Comparing Corporations to Sole Proprietorships and Partnerships
6.	Differences Between a Corporation and a Limited Liability Company (LLC)
7.	Forming a Corporation
8.	Choosing a State for Incorporation
9.	Foreign Corporations
10.	Managing a Corporation
11.	Appointing Officers in a Corporation
12.	Owners of a Corporation
13.	Corporate Stock
14.	Shareholders and Directors for a Corporation
15.	Required Officers for a Corporation
16.	Operating a Corporation
17.	Definition of an S Corporation
18.	How Corporations are Taxed
19.	Checklist for New Corporations
20.	State Procedures for Forming a Corporation

12. Owners of a Corporation

Shareholders (or "stockholders," the terms are by and large interchangeable) are the ultimate owners of a corporation. They have the right to elect directors, vote on major corporate actions (such as mergers) and share in the profits of the corporation. However, shareholders do not have the right to direct the day-to-day operations of the corporation.

A corporation is required to hold annual meetings of shareholders to elect directors. The minutes of these meetings must be carefully maintained by the corporation. If the corporation has only one or a few shareholders, it may make sense to hold the meetings by conference call, or simply by having the shareholders sign a statement indicating what actions were approved.

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