Have you ever had any questions about corporate law? Well, for anyone with a fuzzy view of corporate law, this short summary should set the record straight.
Why are they so important? All corporations are considered legal entities. Your corporation is formed under the laws of the state in which it is incorporated. Each state has its own unique set of laws that you will need to follow, because of this, some states are better for your corporation than others. Stocks, bonds, shares, etc. (corporate securities) that are issued or sold are regulated by federal law pursuant to the 1933 Act.
Ok, I know all that, but what exactly is a corporation? When you make your corporation, you are essentially making a front man. A corporation has the ability to enter into contracts, sue, and be sued, all of which are necessary for any business. This front man will protect any and all individual owners (stocks, bonds, and shareholders) from the liability and debt of the corporation as a whole. There are some exceptions, such as unpaid taxes. Also his corporation aka the leader is given immortality. Simply put, if an individual is laid off or dies, the structure of his corporation will remain unchanged.
OK, looks like I’ll need a “corporation”. Can anyone start a corporation? The person responsible for creating your corporation should be a person well trained in the field of business law. This person should be able to structure your stock and bond offerings, as well as the bank and insurance loans that provide capital to businesses. This person will help you with licensing agreements, joint ventures, acquisitions, mergers, and many other transactions your corporation is facing. The subjects will consist of business tax consultation, internal form, commercial agreements, venture capital financing, training and right of guarantees.
That sums it up, ladies and gentlemen, I hope you enjoyed your introduction to Law 101 of Cooperation.