Corp vs. Corporation

Attribute	Corp	Corporation
Legal Structure	Informal, unincorporated business entity	Formal, incorporated business entity
Ownership	Owned by one or more individuals	Owned by shareholders
Liability	Owners have unlimited liability	Limited liability for shareholders
Taxation	Income taxed at individual level	Income taxed at corporate and individual level
Regulation	Less regulated	More regulated

Definition

When it comes to business entities, the terms "Corp" and "Corporation" are often used interchangeably. However, there are some key differences between the two. A "Corp" is typically used as an abbreviation for "Corporation," which is a legal entity that is separate from its owners. A Corporation is formed by filing articles of incorporation with the state and is governed by a board of directors.

Legal Structure

One of the main differences between a Corp and a Corporation is the legal structure. A Corp is often used as a shorthand way to refer to a Corporation, but it can also refer to a limited liability company (LLC) or other business entity. A Corporation, on the other hand, is a specific type of business entity that is formed under state law and has a formal structure with shareholders, directors, and officers.

Ownership

Another key difference between a Corp and a Corporation is the ownership structure. In a Corporation, ownership is typically divided into shares of stock, which are owned by shareholders. These shareholders have the right to vote on major decisions and elect the board of directors. In a Corp, ownership may be held by a single individual or a group of individuals, and there may not be a formal structure for governance.

Liability

One important aspect to consider when comparing a Corp and a Corporation is liability. In a Corporation, the owners (shareholders) have limited liability, which means that their personal assets are protected from the debts and liabilities of the business. In a Corp, the owners may have unlimited liability, which means that they are personally responsible for the debts and obligations of the business.

Taxation

When it comes to taxation, there are some differences between a Corp and a Corporation. A Corporation is a separate tax entity, which means that it files its own tax return and pays taxes on its profits. Shareholders of a Corporation may also be subject to taxes on dividends and capital gains. In a Corp, the business income is typically passed through to the owners, who report it on their personal tax returns.

Regulation

Both Corps and Corporations are subject to regulation by the state in which they are formed. However, Corporations are typically more heavily regulated than other types of business entities. They are required to hold annual meetings, keep detailed records, and comply with various reporting requirements. Corps, on the other hand, may have fewer regulatory requirements, depending on the type of business entity they are.

Conclusion

In conclusion, while the terms "Corp" and "Corporation" are often used interchangeably, there are some key differences between the two. A Corp can refer to a variety of business entities, while a Corporation is a specific type of legal entity with a formal structure and governance. Understanding these differences can help business owners make informed decisions about the type of entity that is best suited to their needs.