Which of the following statements about incorporation is true? Group of answer choices

1. A corporation has to incorporate in the state in which it is based.

2. A corporation is not subject to the laws of the state in which it is formed.

3. Articles of incorporation may vary slightly from state to state.

4. Corporations are taxed the same regardless of the state in which they are chartered.

5. Corporations must register in each state in which they want to do business.

Question

Bella Edwards

Business

14 December, 13:50

Which of the following statements about incorporation is true? Group of answer choices

1. A corporation has to incorporate in the state in which it is based.

2. A corporation is not subject to the laws of the state in which it is formed.

3. Articles of incorporation may vary slightly from state to state.

4. Corporations are taxed the same regardless of the state in which they are chartered.

5. Corporations must register in each state in which they want to do business.

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Answers (1)

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Essence · Answer 1

Correct option is (3)

Explanation:

Incorporation refers to the legal procedure of forming a corporation. The corporation has to be registered in one of the states. It is not necessary that the firm registered in a particular state need to have operations in the same state. It can conduct operations elsewhere, but, it is regulated by the laws established by the state of incorporation.

Articles of incorporation is the document which constitutes information regarding name of the company, address and details about board of directors. This is submitted at the time of incorporation. Requirements in articles of incorporation is more or less similar in every state but it can differ.

Tax rate levied on corporations vary from state to state depending on the place where operations are carried out.

Corporations can carry out operations in any state but need to be registered in only one state.