Ever have a question about company law? Well, for anyone with a clouded view of company law, this brief summary should make things crystal clear.
Why are they so very important? All companies are considered as legal entities. Your corporation was formed under the laws of the country where it was incorporated. Each state has its own unique laws that you must comply with, which is why some states are better for your company than others. Shares, bonds, stocks and so on (Corporate securities) issued or sold are regulated under Federal law pursuant to the Act of 1933.
Ok I know all that but what exactly is a corporation? When you create your company, you are essentially creating front people. Corporations have the ability to contract, sue, and be sued, all of which are necessary for any business. This front man will protect each individual owner (stocks, bonds and shareholders) from the liabilities and debts of the corporation as a whole. There are some exceptions, such as unpaid taxes. Also your company aka front person receive immortality. Simply put, if one person gets laid off or dies, your company structure won’t change.
OK looks like I’m going to need a “corporation”. Can just anyone start a corporation? The person responsible for setting up your company should be properly trained in commercial law. This person should be able to draw up your stock and bond offerings as well as the bank loans and insurance that provide capital to the company. This person will assist you with licensing arrangements, joint ventures, acquisitions, mergers, and many other transactions your company faces. Subjects will consist of business tax consulting, internal forms, business agreements, venture capital financing, formations, and security law.
That’s about the summary ladies and gentlemen, I hope you enjoyed your introduction to legal cooperation 101.
