There
are several ways you
can structure your
business, and no one
way is necessarily
better than another.
What suits you best
depends on the size
and profitability of
your company, how many
owners you have, and
the risks involved.
There are several
options, which will be
explained in other
entries, but include
sole proprietorships,
partnerships, LLCs,
corporations, and
cooperatives.
Basically, a
corporation is a legal entity. It
is created under the laws of the
state it's incorporated within.
The laws of each state vary, some
more favorable than others.
Federal law - under the Securities
Act of 1933 - regulates how
corporate securities (stocks,
bonds, etc.) are issued and sold.
A corporation
creates an "artificial person" or
entity that can sue or be sued,
enter into contracts, and perform
other duties necessary to maintain
a business. The major advantage of
a corporation is that the entity
shields the individual owners or
shareholders from personal
liability for the liabilities and
debts of the corporation, with
some limited exceptions (such as
unpaid taxes). The legal "person"
status of a corporation also gives
it an indefinite life; the
termination or death of certain
individuals does not alter the
corporate structure.
Persons trained in
corporate law are responsible for
bringing corporations into being.
Corporate lawyers structure the
stock and bond offerings and the
bank and insurance loans that
provide enterprises with capital.
They bring about the joint
ventures, licensing arrangements,
mergers, acquisitions, and the
myriad of other transactions
entered into by the corporation.
Areas include
business formations, securities
law, venture capital financing,
business agreements, internal
forms, and business tax
consultation.
