A corporation derives its name from the Latin word “corporare”: forming a body. The incorporation structure has been created to assist the advancement of business by providing certain protection and flexibility to its shareholders. A corporation has a Board of Directors and a management that could be completely segregated, depending on the limitations that the company chose to abide (i.e. as governed by its Company Bylaws). In many states, the “Board of Directors” can be a single individual. The Board of Directors is elected by the company shareholders. The management is then elected by the board. Two main types of corporate structures are prevalent in the United States: The C-Corporation and the S-Corporation.

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