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Questions tagged [corporation]

a generic tag for company with shareholders. There are some specific tags for specific company types like limited-liability-company, s-corporation, limited-partnership, sole-proprietorship,

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41 votes
3 answers
10k views

Who receives the money when one company buys another?

I read this article about Bayer buying Monsanto. The question which came to my mind was: Who receives the money? If Monsanto receives the money, and Monsanto becomes part of Bayer, then doesn't ...
JohnDizzle's user avatar
24 votes
3 answers
6k views

CEO entitlement from share ownership?

If I own shares of a company, am I entitled to apply as position of CEO? Who decides? Do I have more clout within the corporation to gain positions of work in the company than a non-holder? What kind ...
SeneJerry's user avatar
  • 241
24 votes
3 answers
6k views

If a company that doesn't pay dividends makes a large profit, where does it go?

Does the company have a responsibility to reinvest all of it? Can a company have a lot of money just sitting around? Is that grounds for shareholders to sue? If a company has a lot of money just ...
user2958456's user avatar
20 votes
1 answer
3k views

I received a share of Apple stock. Now what?

For my 13th birthday, I received a single share of AAPL, Apple Inc. I framed my certificate, and placed it up on my wall, but what else can I do? I am aware of the basic mechanics of buying and ...
AAM111's user avatar
  • 311
14 votes
4 answers
8k views

How much power does a CEO have over a public company?

I want to invest in a public company and I want to know: Exactly how much power does the CEO has over what the public company does? Can a CEO control a public company even though he doesn't own a ...
Pacerier's user avatar
  • 723
12 votes
3 answers
3k views

Where can publicly traded profits go but to shareholders via dividends?

Some companies don't pay dividends. Some companies accumulate money like the offshore "exiled" or expatriated cash piles of the likes of Apple and friends. So I suppose that corporate profits can be ...
J. Doe's user avatar
  • 459
11 votes
3 answers
10k views

Why do banks require small businesses to open a business bank account instead of a cheaper personal one?

I understand the need to separate personal finances and the business finances, be it sole-proprietorship or incorporation. I also understand that in the former it's optional, but in the latter it is ...
Slav's user avatar
  • 319
11 votes
1 answer
423 views

My software business makes nothing for years, then a big chunk of money all in one year. Is a C-corp the best structure for tax purposes?

I make video games by myself for a living. This process involves many years of unpaid work before a game is released, and then a sudden "windfall" type wave of money when the game finally comes out. ...
Jason Rohrer's user avatar
9 votes
3 answers
306 views

What is the advantage to a company (airline, retailer, etc.) of having a branded credit card?

I enjoy the benefits of an airline's "signature" credit card: miles per dollar spent, an annual travel incentive, waived fees, and the like. I wonder what the airline gets out of the deal.
Peter Schilling's user avatar
9 votes
1 answer
389 views

Does being on the board of a bankruptcy-declaring company affect my credit rating?

If I am on the managing board of a company which declares bankruptcy, will it affect my personal credit rating? I am particularly interested in Western Australia.
Frames Catherine White's user avatar
8 votes
2 answers
6k views

Company is late in paying my corporate credit card statement - will it hurt my credit?

I recently took a business trip for my company and was given a corporate credit card, issued under my name (meaning all else fails, I am responsible for the bill). Our finance people have made a lot ...
James Wierzba's user avatar
8 votes
1 answer
7k views

How to pay myself as a single person corporation in Ontario? Should I get an accountant?

I'm an IT contractor and required in some of my contracts to have a corporation. I created my corporation, opened a corporate account and have been collecting income for about 6 months now... ... I ...
mgjk's user avatar
  • 275
7 votes
2 answers
321 views

Is building a corporation a good option?

In Robert Kiyosaki's "Rich Dad, Poor Dad" he talks about building a corporation and doing transaction through it instead of doing them yourself, directly. There seems to be a lot of advantages in ...
Melissa's user avatar
  • 71
6 votes
2 answers
918 views

Bank loan responsibility for corporation partners

I own 25% of a small corporation. My partner (who owns the other 75%) and I took a loan with a bank (TD). We both had to give personal guarantees. Am I only responsible for 25% of the loan? If we go ...
Gerald's user avatar
  • 61
6 votes
1 answer
289 views

Why is investment income generated in a corporation taxed at a higher rate than when it is generated for an individual?

I often have a hard time understanding my accountant so I ask others to interpret what he said. I welcome insight from experience gained in any country with similar tax laws (doesn't have to exactly ...
learningtech's user avatar
6 votes
2 answers
423 views

Is this formula accurate for weighing the difference between an S-Corp and LLC?

I have been doing much research before deciding on a S-Corp or LLC for an online start-up (2 people, software as a service). I've read lots of explanations of the two and their differences and I've ...
sbuck's user avatar
  • 243
6 votes
2 answers
288 views

Shelter personal corporation dividends in a TFSA?

As I understand it, it is possible for people who own their own corporation/small business to pay themselves through dividends. Since they own 100% share in the business they receive 100% dividends. ...
Mike Saull's user avatar
5 votes
3 answers
3k views

In Canada, can a limited corporation be used as an income tax shelter?

I've heard this old chestnut from various people over the years but have never been able to find any solid information on the process and thus, never put it to the test. The claim is that if you plan ...
Aaronaught's user avatar
  • 1,003
5 votes
4 answers
73k views

How can I lookup the business associated with a FEIN?

I have a FEIN (Federal Employer Identification Number) and need to locate the business or non-profit that has been assigned that number, how can I look that up only given the FEIN number?
WilliamKF's user avatar
  • 1,823
5 votes
2 answers
6k views

Can I invest C-corp or S-corp profits by purchasing stock, bonds or property to reduce tax liability?

If I own a C-corp or an S-corp in the US ( say for example Delaware ), and I take profits from revenue after expenses for the corporation and purchase stock in the US stock markets, bonds or other ...
sean2078's user avatar
  • 183
4 votes
2 answers
7k views

What does this diagram from Robert Kiyosaki about corporations mean? [closed]

I am trying to understand this diagram of corporations from "Rich Dad Poor Dad." I can't really make sense out of this diagram.
user avatar
4 votes
4 answers
2k views

Can you live through a corporation, i.e. conduct personal affairs through a business?

I was curious if it were legal (USA) and possible to live "inside" of a corporation. As in I would purchase a house/car/etc through a corporate entity (I realize I'd likely pay more, but bear with me) ...
mlw4428's user avatar
  • 149
4 votes
1 answer
1k views

Checking whether a private company is a subsidiary of a public company

I am currently managing a lawsuit against a private company, let's call it "X". It's an Israeli company. I need to prove to the court that company X is actually a subsidiary of company Y, which is a ...
Ram Rachum's user avatar
4 votes
1 answer
2k views

What forces cause a company to write down goodwill?

Consider TimeWarner: In 2002, $128Billion of its $209Billion in assets was Goodwill. What forced them to write down this goodwill to $37billion a few years later?
zundarz's user avatar
  • 1,182
4 votes
2 answers
287 views

How to evaluate different account (RRSP, TFSA, ...) and investment types (equities, bonds, cash) combinations

If I make $1 tomorrow, I can put that $1 in several accounts: Personal non-registered account Personal RRSP account Personal TFSA account Pay down mortgage Leave in corporation and take out later In ...
Brian Low's user avatar
  • 131
4 votes
0 answers
111 views

Hostile takeover bid to turn company private - how does it work (current context: Musk / Twitter)?

With regard to the current coverage of Musk announcing his wish to turn Twitter into a private company, I'd appreciate some clarification: Twitter stock, according to Yahoo Finance, is owned by ...
Zubo's user avatar
  • 487
3 votes
2 answers
3k views

H&R Block says form 1120 not finalized? IRS won't take it yet?

So basically I'm a new business. I bought H&R Block's Premium tax software to file my return. I fill out the form, and at the very end I get an error message saying "This product is not yet ...
Stephen J's user avatar
  • 133
3 votes
2 answers
186 views

How exactly could we rank or value how "rich" a company brand is?

I've just read http://www.bloomberg.com/news/2011-05-09/apple-brand-value-at-153-billion-overtakes-google-for-top-spot.html and it says Apple's brand value is $153.3 billion and Google's is $111.5 ...
Pacerier's user avatar
  • 723
3 votes
1 answer
564 views

What amount of money can a corporation spend on entertainment

In Ontario, Canada, what is the amount of money that a small business corporation can spend on travel/leisure/entertainment expenses? Imagine a one person software developer running his own ...
Victor123's user avatar
  • 16k
3 votes
3 answers
1k views

$10,000 was accidentally transferred to me instead of my company

As a result of a business competition we won for school, $10,000USD was transferred from my University's Accounts Payable department, to me. It should have been transferred to my business, a C-...
unicornication's user avatar
3 votes
2 answers
2k views

Is there a standard ratio of preferred shares to common shares in a company?

I'm confused about how common and preferred shares coexist. Is a single preferred share always equal to the same amount of the company as a single common share, or does a preferred share somehow ...
CodyBugstein's user avatar
  • 1,290
3 votes
1 answer
215 views

What's the difference between "gross profit", "operating income" and "net income"?

I received an email boasting about a company doing the following in their 4th quarter Revenues up 94% to $978m USD Operating Income up 600% to $200m Net profit of $123.9m What is the difference ...
slinglift's user avatar
3 votes
1 answer
204 views

Are the CEO's earnings different from the company's earnings?

I am a resident of Ontario and I am planning to go to University in September. Upon applying for OSAP I was asked what my monthly salary while in school will be (excluding time away from school). I ...
Dante's user avatar
  • 133
3 votes
1 answer
1k views

US dividends double taxation for foreigners (UK)

I have read that the US government exercises a 15% (or even 30%, where the foreign country is not in the double-taxation treaty with the US) withholding tax on US dividends, if the shareholder is ...
Marco Pagliaricci's user avatar
3 votes
1 answer
218 views

Late payment of corporation tax UK

I am hoping to hear from anyone who has experience being a single person Ltd company in the UK who has ever paid their corporation tax late by prior arrangement with HMRC i.e. letting them know I may ...
codecowboy's user avatar
3 votes
1 answer
110 views

Can I write off (deduct) expenses in a period where my corporation makes no money?

Let us say I have a small corporation in Ontario, Canada and I am an IT contractor through the corporation. There is a one month gap between contracts, which means I don't earn anything in that time....
Victor123's user avatar
  • 16k
3 votes
2 answers
232 views

Better ways to invest money held by my small, privately-held Canadian corporation?

I own a small, privately-held corporation and am looking for ways to invest my corporation's money more effectively. The problem is the government taxes passive investment income inside a corporation ...
vassos's user avatar
  • 31
3 votes
0 answers
64 views

What benefits and risks do American C-corps have for investors in Europe?

In Europe the start-up investor climate seem quite different from what investors and entrepreneurs experience in the US. As I am being part of a few different EU based startups I am confronted with ...
not2qubit's user avatar
  • 231
3 votes
1 answer
1k views

How much taxes do corporations have to pay on dividends they receive from other companies?

I am trying to figure out whether it would be beneficial for me to convert my sole-proprietorship to a corporation. In doing my research, I need to figure out how corporations get taxed on dividends ...
Gili's user avatar
  • 532
2 votes
3 answers
2k views

What is the valuation of a company based on?

What does the valuation of a company mean, exactly? What is it based on and how is its "correct" value calculated? For example, a valuation of $1 million for a company that has had $50k in profits ...
user541686's user avatar
  • 3,369
2 votes
2 answers
4k views

Is there a minimum limit where a limited company can pay zero corporation tax?

I am self-employed, I have a limited company, there is only myself in the company. Last year I only earned just over £5,000, I have just received the final accounts from my accountant saying I need ...
Family's user avatar
  • 123
2 votes
1 answer
1k views

Insider trading of a linked security like an ETF your company has a heavy weighting in

Let's say you work for Apple, Inc as a middle class employee. This is a large publicly traded company. By the very nature of your employment there will be limited times that one can make purchases and ...
CQM's user avatar
  • 20.2k
2 votes
1 answer
361 views

Should the cost of using public transit get deducted from my personal income or my corporations' income?

As a full time employee, certain costs are deductible from personal income. (e.g cost of public transit pass.) When the full time employee becomes an independent contractor, do these expenses ...
Victor123's user avatar
  • 16k
2 votes
1 answer
167 views

Is stock in a private corporation taxable?

If I start a private corporation and it gets a large equity injection from an outside investor, is this taxable in any way, or is it not until I get paid a salary or get a disbursement from the ...
Five Bagger's user avatar
  • 9,785
2 votes
1 answer
149 views

UK Ltd taxation on stocks/bonds income and real estate rent income

If I got it, the main tax an UK Ltd has to pay is the corporate tax, which is about 20% of the total income of the company. This income include income derived from bonds, stocks, mutual funds ...
Marco Pagliaricci's user avatar
2 votes
2 answers
194 views

Are companies allowed to pay out more dividends than their retained earnings?

Assume that a corporation was formed three years ago with $500,000 in starting capital. In each of the first three years, it earned $100,000 and did not pay any dividends. It now has $300,000 in ...
Flux's user avatar
  • 17.1k
2 votes
1 answer
275 views

Does market cap include ALL shareholders, including a company's founders and largest institutional investors?

If a given company has a $100B market cap, does that include all of its shares, or is that only the ones which are publicly traded? Are the founders' shares included in the count, as well as those ...
temporary_user_name's user avatar
2 votes
2 answers
94 views

How to choose a year end date for your Ontario small business corporation?

While opening a small business corporation in Ontario, how do you select a proper year end date? Is it a random date ? Or are there guidelines to it?
Victor123's user avatar
  • 16k
2 votes
2 answers
3k views

Where can I find historical rates for corporate bonds?

Are there databases that track corporate bond interest rates and rates of return? How do I get access to them?
user avatar
2 votes
1 answer
74 views

Corporate Coverdell ESA Tax Liability

Say John has three kids, Alice, Bob, and Carl, and sets up an ESA for each child. Also, John's income is too high to contribute to the ESA himself. Can he have a non-deductible corporate contribution ...
Jacub Fiona's user avatar