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HomeRecruitment GuideCorporations: What You Need to Know

Corporations: What You Need to Know

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While there are several business structures for new business owners to choose from, corporations may be the best choice for your business venture. It is crucial to understand what a corporation is, as well as what you need to do to properly to incorporate your business. By learning these details, you may be able to simplify the incorporation process, as well as minimize the problems that you may face along the way.

The Importance of Establishing Corporate Bylaws

There are no filing requirements for your corporate bylaws, yet they are still important to your company, as they help ensure your corporate status isn’t revoked.

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Prepare to File Your Articles of Incorporation

If you have come to the decision to incorporate, you must file articles of incorporation with your state. The articles serve as a charter that establishes your company as a registered business entity.

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Factors That Influence the Effectiveness of a Board of Directors

The potential of personal liability in board decisions is one factor governing the effectiveness of a board of directors. Self-awareness is another factor.

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Recognize the Types of Legal Procedures Your Corporation Should Maintain

Corporation directors should always be sure to adhere to all necessary legal procedures. Doing so goes a long way in helping with efficiency and compliance.

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5 Unique Benefits of Incorporating a Business

There are many benefits to incorporating a business, including perpetual existence, limited liability, potential investors and clarity of structure.

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The ABCs of Incorporation

Incorporating protects you from your company’s liabilities. Yet you must adhere to the incorporation standards or else risk losing your corporate status.If you’re like most small business owners, then you’ll likely retain full ownership and control of your company during its earliest days of operation. However, your ultimate goal is to find success and make your business profitable. As that happens, new roles and responsibilities will be shifted to you. These can quickly become overwhelming without having a partner or partners to relieve the burden. Yet bringing partners into your business brings with it an inherent risk. In a general business partnership, the actions of an individual partner must be answered for by the entire ownership team. This opens the door for creditors to potentially come after you and your own personal assets to resolve your partners’ liabilities. It’s the potential of such liability concerns that prompts many in your position to choose to incorporate when bringing on new partners. By forming a limited liability corporation, you protect your personal wealth from your ownership role in your company.

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3 Important Ways C and S Corporations Differ

When it comes to incorporating a business, there are two choices: C or S corporation. The two differ in several ways, including how they are taxed.

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Frequently Asked Questions About Small Business Corporations

Learn what makes small business corporations unique from other business structures. Do the benefits make it the right structure for your small business?

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What Corporation Owners Must Know About Dividends

Knowing how corporations, shareholders, and owners must handle dividends and the taxes associated with them is complicated. Learn the basics before starting.

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Why You Need a Shareholder Buyout

A shareholder buyout keeps ownership of your company from falling into the wrong hands. Such an agreement should be created during the formation of your business.A lot of confusion exists regarding what exactly a shareholder buyout is. Many believe it involves the sale of stock or ownership interest. In reality, nothing could be further from the truth. In fact, a shareholder buyout agreement itself is a tool used to prevent the unauthorized or unfavorable sale of your company’s stock. If you work with others in either a general or corporate partnership, you may want to seriously consider putting such an agreement in place before it is too late.

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The Pros and Cons of Incorporating Your Business

As a small business owner, should you incorporate your business? The following article details the pros and cons of running your business as a corporation.

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Facts to Consider Before Joining a Professional Corporation

What is a professional corporation and how does it differ from a regular corporation? This article will explain the structure of professional corporations.

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General Guidelines for Incorporating a Business

Looking to incorporate a business? Understand and follow these essential steps in order to be in compliance with state and federal regulations.

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Not Sure Where to Incorporate? Here Are Your Options

Having trouble understanding the process of incorporation? Wondering where to incorporate? Get all the information and help you need to start a corporation.

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Important People and Their Roles in a Corporation

Corporations usually have a variety of roles that are needed in order to ensure success. Learn about possible jobs that should be appointed in a corporation.

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A Checklist of How to Start a Corporation

When thinking about creating a corporation, you must learn about the different requirements. There are steps that include legal and financial considerations.

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What Is a Corporation?

A corporation is a type of business structure that separates the business owners from the company. Referred to as a limited liability partnership, corporations are run by directors, officers and shareholders who all share a common interest in the business. Since corporations are set apart from the company overseers, the owners, directors, officers and shareholders’ personal assets are protected from liability. There are guidelines and regulations set in place to ensure corporations are operating in a fair and legal fashion. Furthermore, businesses must meet certain criteria in order to achieve incorporation status.

The Advantages to Starting a Corporation

Corporations offer several distinct advantages when compared to other types of business structures. In a corporation, the business owners and shareholders are not legally responsible for the company’s debts and business activities. Once the company becomes incorporated, the business is recognized as a separate entity, and the owners are no longer held liable. As a corporation, shareholders and other potential investors are able to purchase stock in the company. The company may also be able to offer stock shares to employees, which in most cases attracts a higher-caliber group of employee candidates. Employees and other investors like the fact that they are able to participate in the wellbeing of the business, and they receive a payoff when the company is successful. Corporations have an effective and powerful management hierarchy. With elected directors, officers, members and shareholders, each role has clear and structured responsibilities to carry out in order to make the business run smoothly. Business owners who feel as though their company would benefit from offering stocks to shareholders or who have a family business that they want to make gift shares to family members would benefit from incorporating their business. In addition, corporations are able to save money by keeping their profits within the company.

How Is a Corporation Formed?

There are several steps that business owners must take when incorporating a business. The owners must first create a name for the corporation, keeping in mind that there are restrictions with using certain words. Once the name is put in place, business partners must elect a board of directors. These important people will oversee the formation, development and operation of the business. In order to apply for incorporation status, company overseers must fill out and file the proper articles of incorporation paperwork and other necessary documents. Along with this paperwork, some states require corporations to create company bylaws, which act as a blueprint for how the company will be managed and operate on a daily basis. Once the incorporation status is in place, the company may choose to hold a board meeting. Members may discuss the structure of the company, elect corporate officers, manage stock options and talk about any other important issues surrounding the business. Keep in mind that the business owners may also need to apply for special permits or licenses that relate to operating a business in a specific industry. These licenses and permits may vary by state.

Understanding the Corporate Structure

The management structure of a corporation can be a major asset to the success of a business. Generally, the corporation is run by a board of directors, officers and shareholders. The board of directors are usually put in place when the company is formed, and in turn help with the organization of the company. These directors are ultimately responsible for creating the company rules and guidelines, and making decisions in the best interest of the business. Officers also act on the company’s behalf to ensure that the rules and regulations are being carried out properly. The officers include the following: Chief Executive Officer, Chief Financial Officer, Chief Operating Officer and Secretary. Each has a defined role to take care of legal contracts, operations, finances and records. People who want to invest in a corporation can become shareholders by purchasing stock. In some cases, shareholders may consist of a small group of people who own a part of the full corporation. Other larger companies, however, may choose to offer stock to the public. Corporations are often required to hold shareholder meetings at least once a year. When owners understand the process of incorporating a company, they may find that this type of management structure will be best for the future of their business.

Legal Disclaimer

The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney.

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