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Corporations have been around for years. Corporations were formed to protect the managers and owner of the corporation from placing their personal assets at risk to pay the obligation of the corporation. Corporations can elect to be a pass through for Federal tax purposes - an "S" corporation - or can elect to pay their own taxes - a "C" corporation. However, no matter which election is made all corporations issue stock to its owners. The flaw in having a corporation as your entity is that the stock owned in that corporation is available for creditor remedy.

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