A corporation is meant to absorb the financial and legal liability its owners might otherwise accrue in the course of running their business. However, a corporation’s effectiveness is not limitless, and there may come a time when it becomes necessary to bring the corporation’s business to a close. When that happens, you will need to undertake a corporation dissolution, which can be a more complicated process than it first appears. Continue reading “The Complications of Corporate Dissolution”
If you’re a shareholder in a corporation, you have certain rights, and not just the right to receive a dividend or sell off your stock for money. Shareholders are, after all, essentially the owners of a corporation, and as an owner (or, at least, a part-owner), you’re entitled to have a say in how your company operates. However, not all these rights are obvious and may require you to do a little extra legwork to enforce them. Continue reading “Four Things You Need to Know as a Shareholder”
If you’re a business owner, chances are you’ve heard of “double taxation,” and the scourge it presents to business owners. Indeed, double taxation can eat into a company’s profits and aggravate any financial issues you might be having. But how is it possible for a business to be taxed twice? Is that even legal? Continue reading “Double Taxation: How Can a Business Get Taxed Twice?”
Starting your own business can be difficult and stressful, and running that business can be even more so. However, breaking up a business and wrapping up its affairs can be difficult in its own way, if you’re not appropriately prepared. However, how hard it is can depend on how your business is organized, and how many other people own the company you’re trying to break up. Continue reading “Breaking Up a Business is Hard to Do”
It’s hardly a secret that many people look to Delaware when they want to incorporate a new business or reorganize an old business. However, people unfamiliar with business law might wonder why someone would want to incorporate there, even people who don’t intend to do business there. After all, isn’t it easier to just incorporate in your own state? Continue reading “Why Do So Many People Incorporate in Delaware?”
When you hear about stocks, it’s usually in the context of the stock market, where people buy and sell shares in companies in the hopes of turning a profit. But what, exactly, is it? What does it mean to have stock in a company, and what can you do with it besides sell it on the market? Continue reading “Taking Stock of Stocks”
Nothing lasts forever. Even if you’re a business owner and you love what you do, at some point you’ll want to leave your business, either to move on to greater things or to enjoy your retirement. But what happens once you leave your business? Does it linger on, or do you close shop for good? And what happens if you do? Continue reading “Hanging Up Your Hat: What Happens When You Want to Leave Your Business?”
Even though corporations are an omnipresent part of day-to-day life in the modern world, many people don’t know what a corporation is, or why someone would want to incorporate their business in the first place.
A corporation put simply, is a legal entity that exists independently of the people who own and run it. Due to what is known as “the legal fiction of corporate personhood,” corporations are treated as legal “persons” for a variety of purposes, most significantly for the purposes of legal and financial liability. In other words, when a business loses money or gets sued, it would normally be the business’ owner or owners that are held responsible for paying off the business’ debts or paying for any legal judgments. However, when a business is incorporated, those losses and judgments are generally incurred by the corporation, not the owners, and so the owners generally aren’t held responsible if the company can’t pay for everything and goes bankrupt.
Continue reading “Why Incorporate?”