1.Can a corporation that is incorporated in one state do business in other states?
No, a corporation can only do business in the state where it is incorporated.
Yes, a corporation can do business in states where it is not incorporated by obtaining a certificate of authority in states where it is not incorporated.
Yes, a corporation can do business in a state where it is not incorporated, but it must re-incorporate in states where it was not originally incorporated.
Yes, a corporation can do business in a state where it is not incorporated, but it must use another name in a state where it is not incorporated.
2. Dividends paid to shareholders by corporations are paid from profits of the corporation after the corporation has paid income taxes on those profits. When a shareholder receives a dividend, that dividend is taxable income to that shareholder. These income tax consequences are known as:
retained earnings taxation.
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