X.   What Is A Corporation

This is an entity whose characteristics include:

• Limited liability
• Continuity of life
• Centralized management
• Free transferability of interests

If the entity has limited liability, then it must have at least two of the other characteristics to qualify as a corporation for IRS tax purposes. A German GmbH has been held to be a corporation. No determination has been made for a Czech spol. s r.o. and would probably depend on the founding documents. However, under the current "check the box" regulations, it may be possible to elect to chose the method of taxation, either as as corporation or as a "see through" entity. 

If an entity is deemed not to be a corporation, then it will be taxed as a partnership or a sole proprietorship, if there is only one shareholder. This may be beneficial or detrimental for US tax purposes.