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ORNIA BUSINESS ASSOCIATIONS OUTLINE I. Corporations A corporation is a legal entity distinct from its owners and may be created only by filing certain documents with the state. A. General Considerations i. Ownership 1. usually freely transferrable ii. Taxation 1. C Corporation a. Taxed as an entity distinct from its owners b. Therefore, distributions to shareholders are taxed a second time as income to the shareholder 2. S Corporation a. Taxed like a partnership, but retain other partnership adv.

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