A business is generally defined as a company or organized entity characterized by a recognized brand, profession, or line of business activity. A business can also be non-profitable enterprises or for-profit ones which operate to meet a social cause or further a social agenda. Whatever the nature of the business, there is always the possibility of profit, loss and the need to make repayments. Business owners are constantly on the lookout to develop their business and increase their clientele and customer base.
Many businesses require special legal rights due to the nature of the enterprise and the industry they are operating in. All businesses may need specific legal rights such as the right to operate legally, the right to own property, the right to own and manage assets, and the right to participate in many different aspects of the industry. All corporations enjoy the right to be treated fairly and the ability to bargain. However, all corporations do not enjoy the same legal rights as individuals and should always seek the counsel of a corporate law specialist when seeking to incorporate in any jurisdiction.
Corporations are primarily created in order to create a separate legal entity from the rest of the company. In Canada, a corporation can be organized either by shareholders or by the sole proprietor. A corporation is viewed as having two main aspects, the first being that it is a separate legal entity from its shareholders or partners, and the second being that it is privately owned. It should be noted that in Canada, even though a corporation is considered to be a separate legal entity, all of its shareholders are legally responsible for the corporation’s debts and activities. Therefore, although a corporation may have separate directors and officers, all of their activities and debts are attributed to the corporation and no individual or partner has the authority to control the corporation.
A shareholder is a person who owns shares of a corporation. Shareholders are entitled to the dividend entitlement, which is usually paid on a regular basis. Generally, a shareholder is a person who owns shares of a corporation individually, or in a limited partnership form. A corporation is considered to be a shareholder in relation to its publicly traded common stock. A corporation may also be required to issue share capital to its shareholders periodically in order to cover their costs and operational expenses.
A corporation may also be created as a limited liability company in Canada. A limited company is a separate entity from its owners and also from the state in which it operates. Its shareholders are limited to one share, which represents all of the corporation’s liabilities and assets. In contrast, a corporation may issue share capital to its shareholders to facilitate debt repayment.
In the United States, a business owner can incorporate his business through a sole proprietorship, a partnership, a corporation, or a partnership. He may also form a limited liability company or an unincorporated business. Each of these allows the business owner to determine the structure and governance of the business. If the business meets the requirements of the state, he may still be able to incorporate it. Business owners can do this online by visiting the website of the Secretary of State. If you are looking for assistance with incorporating your business, contact a business attorney.