Where Form 1120 C Historical 2023-2024

We've all come in contact with corporations. You might work for a corporation, buy something from a corporation, or even own shares in a corporation. So, we have a sense of what they are. But, in this video, I want to make that sense a little bit more precise and also explain why corporations even exist. A corporation is a legal entity that can act like a person. I put "act" in quotes because obviously there are some things that a person can do that a corporation can't. For example, a person can smile, while we may debate whether a corporation can do the same. When I say "act," I mean legally. A corporation can sue or be sued by another corporation or a person. It can own things, just like a person does. It can owe money to other people or corporations. But, what I want to focus on is why corporations exist. In my mind, there are two big reasons. The first reason, and the biggest one, is limited liability. Limited liability may sound like a fancy word, but it's not too complicated. Let me explain with an example. Let's say there's a guy named Bill. Bill owns a house worth $500,000, a car worth $50,000, and some investments or stocks worth another $500,000. Bill sees an opportunity to start a cab or car service business in his town. So, he buys a cab and licenses it. These things are actually more expensive than you would imagine. Let's say it costs him $80,000, and he spends $1,000 for liability insurance in case something bad happens. One day, while driving the cab, Bill accidentally rolls over someone's foot. Unfortunately, that person happens to be a world-class soccer player, and Bill's actions ruin his career. The soccer player sues Bill for $1 million because...