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Many people starting their own business here about the various companies, but not really understand. Here is an introduction to the legal person.
Introduction to the legal person
The work for you is a great thing. It gives you the freedom, time and a sense of pride and achievement. While it is undisputed that small businesses are the backbone of our economy, many of these small companies in difficulty can lead to. While everybody thinks they are a fundamental success, the statistics show a majority of companies will not within two years. This means protecting yourself from the outset, an important step.
The recording is a way to protect a company if efforts are not. Companies are the oldest form of business, which means that the laws surrounding them are well established. In the eyes of the law, a company in a legal person. This leads to something, the so-called corporate shield against liability. If a company is sued for companies that are parties to the action against the economy recovers. They can not even name the shareholders. Let's take a look at a practical example.
Microsoft, if a listed company, namely you and I can shares on the stock exchange. This means that we are owners of the company, even if our ownership interest is small. If Microsoft sues, we can not in the action. If the complaint parties win, they can not play against ourselves, namely, they can not for our house or bank account. The only way is to go after bank accounts and assets from Microsoft, the company.
There are two exceptions where a company not as a shield against measures to its shareholders. If I were a company and then pursue criminal activities, I get no protection. This is what with Enron. Secondly, a company is not the protection, if I misuse it. This happens when I mix my personal finances with them, carry no real economy and so on. This second situation is very difficult to prove, for a party sued.
With regard to the nuts and bolts of a corporation, the process is fairly simple. The company is by filing with the Secretary of State Statutes for your location. The company is called its statutes, which, in essence, is how corporate business. The holders of shares of a corporation are known as shareholders. When is the corporate business, the Board meets closer to debate and decisions. The board members are elected by the shareholders.
When starting a business, it is important that you take steps to protect themselves. A company is a solid choice.
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