Business Law Corporations

In: Business and Management

Submitted By Aelios21
Words 498
Pages 2
Corporations • Corporate attributes o Legal entities o Creature of the state ▪ State statute ▪ Uniform model corporations act o Limited liability ▪ Owners = shareholders ▪ Sign agreements to buy stock in this corp • Certain $ investment • Whatever they invest of promise to invest they are held liable for ▪ Free transfer of stock • Don’t need consent to transfer stock/liability/rights ▪ Perpetual existence – unique to corporations • When a shareholder dies the corporation doesn’t die/dissolve ▪ Centralized management • Corp structure(see written notes) ▪ Is a person ▪ Is a citizen (of the state where it is created(can make political contributions ect.) • Classification of Corporations o Public or Private ▪ Public – governmental bodies o Profit or non profit ▪ Profit – Shareholders ▪ Non-profit – Don’t have shareholders simply have board of directors o Domestic or foreign ▪ Foreign could get franchise tax if they aren’t a state corporation but are making money in that state o Close held/publicly held ▪ Close – only a few shareholders o Professional corporations ▪ Will have after the name they will have P.C.(professional corporation) or S.C.(service corporation) o Sub-S corporation ▪ A corporation that is formed under the state statue and is for profit with a few shareholders ▪ HOWEVER asking for special tax-treatment • Sub-S by application asks for single taxation…...

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