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Stock Corporation. This is the most general type of corporation. A corporation must have at least three officers (President, Secretary, and Treasurer), at least one Director, and is owned by shareholders, which may be individuals or other business entities.
To start a corporation in Maryland, you must file Articles of Incorporation with the State Department of Assessments and Taxation (SDAT). You can file the document online or by mail. The Articles of Incorporation cost $100, plus an organization and capitalization fee of $20 and a 3% credit card fee.
Articles of incorporation are a set of formal documents filed with a government body to legally document the creation of a corporation. Articles of incorporation generally contain pertinent information such as the firm's name, street address, agent for service of process, and the amount and type of stock to be issued.
What Are Stock Corporations? Stock corporations are for-profit organizations that issue shares of stock to shareholders (also known as stockholders) to raise capital, with each share representing partial ownership of the corporation and granting shareholders certain ownership rights that shape company policies.
Stock corporations are the most popular type of business entity for several reasons: They allow owners to raise capital by selling stock. They can do business on a global scale. They have the ability to acquire other businesses for the purpose of expansion.
A stock corporation has authorized capital stock divided into shares of stock either with or without par value. It's engaged in income-generating activities and authorized to declare dividends. A non-stock corporation has no authorized capital stock.
Close corporations are generally smaller businesses who desire the limited liability and tax benefits of a corporation but whose stockholders wish to maintain streamlined managerial control of the business. With corporation status comes many formalities.