The disadvantages of operating as a corporation include the costs of organization, regulation, and potential double taxation There are key differences between public corporations that experience an IPO and private corporations

A corporation’s shares continue to be bought and sold by the public in the secondary market after an IPO The process of forming a corporation involves several steps, which result in a legal entity that can issue stock, enter into contracts, buy and sell assets, and borrow funds

corporation — legal business structure involving one or more individuals (owners) who are legally distinct (separate) from the business. double taxation — occurs when income is taxed to the corporation that earned the income, and then taxed again to stockholders when they receive a distribution of the corporation’s income as…. private corporation — corporation usually owned by a relatively small number of investors; shares are not traded publicly, and the ownership of the stock is restricted to only those allowed by the…. secondary market — organized market where previously issued stocks and bonds can be traded after they are issued.