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Assume Debbie and Ian formed a C corporation instead of an S corporation. By what means, available only to C corps, might Debbie and Ian
Assume Debbie and Ian formed a "C" corporation instead of an "S" corporation. By what means, available only to "C" corps, might Debbie and Ian maintain control of the corporation they built?
[Hint: This one's in the notes but not the chart.]
1. | They don't have to worry about losing control because they have the power to shut down the corporation by themselves if they are ever voted off the board by the other shareholders | |
2. | There is no means of protecting their control of the corporation | |
3. | They don't have to worry about losing control; they own the corporation because they were the ones who created it | |
4. | When they set up the corporation, they could have issued themselves voting shares and the other shareholders nonvoting shares so they could never be voted off of the board of directors |
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