Charles Schwab is a for-profit Corporation whose main business is savings and loans. The company provides banking and asset management services, and financial advisory. It has several subsidiaries – Charles Schwab & Co., Inc., Charles Schwab Investment Management, Inc., TD Ameritrade, Inc., and TD Ameritrade Clearing, Inc., which are all limited liability companies (“The Charles Schwab Corporation,” 2021). This paper aims to analyze the form of business in Charles Schwab Corporation (CSC).
Charles Schwab is a corporation, which is a form of business with some distinctive features. Firstly, its officers are agents, unlike its directors and shareholders, which means that the latter are not involved in the company’s current strategic, managerial and other business decisions (“Corporation,” 2022). Secondly, the corporation is managed by the board of directors who have the right to appoint the officers. This approach creates a balance of managerial forces, since CEOs and CFOs are directly involved in the work processes, and the board of directors, in extreme cases, has the right to dismiss them by voting.
In the corporation, shareholders are free to transfer ownership, which means that in critical situations such as bankruptcy, the corporation can be sold to another owner. This outcome is possible because the corporation is an organization that creates an opportunity for investors to profit by investing, unlike an LLC (“Forming a corporation,” 2022). Finally, in corporations, the income is taxed twice: the first time at the corporate level, and a second time if dividends are distributed to shareholders.
Thus, the form of business in Charles Schwab Corporation was analyzed. The CSC is a corporation with several subsidiaries and conducts business following the requirements for a corporation form of organization. A distinctive feature of corporations is the board of directors, which has an indirect influence on daily decision-making. Still, in critical cases, it can appoint new officers to manage the company. Corporations can also transfer property rights in the event of bankruptcy or other cases.
References
Corporation. (2022). Entrepreneur.
Forming a corporation. (2022). IRS.
The Charles Schwab Corporation. (2021). US Securities and Exchange Commission.