Initially, the concept of an incorporated company was developed in response to the need in financing large economic projects without the limitations associated with sole proprietorships and partnerships. Sole proprietorships created problems because they did not allow for the acquisition of substantial capitals through the participation of many entrepreneurs. The difficulty with partnerships was that major decisions needed to be agreed upon with all the partners, thus making large partnerships impractical. What was needed was to make a large number of people participate in a business venture without playing an active role in it, and the idea of a corporation was initially designed to accomplish this end. Therefore, the most significant feature of an incorporated company is that it represents a separate legal entity from ...
Noteworthy
Initially, the concept of an incorporated company was developed in response to the need in financing large economic projects without the limitations associated with sole proprietorships and partnerships. Sole proprietorships created problems because they did not allow for the acquisition of substantial capitals through the participation of many entrepreneurs. The difficulty with partnerships was that major decisions needed to be agreed upon with all the partners, thus making large partnerships impractical. What was needed was to make a large number of people participate in a business venture without playing an active role in it, and the idea of a corporation was initially designed to accomplish this end. Therefore, the most significant feature of an incorporated company is that it represents a separate legal entity from ...
Preliminary analysis of the best-positioned stocks that may be the most powerful in 2008 shows that three companies, namely, Best Buy (NYSE: BBY), Ctrip.com (Nasdaq: CTRP), and Apple (Nasdaq: AAPL), look especially promising.
Best Buy Co. Inc. (NYSE: BBY) is the largest national corporative retailer dealing with consumer electronics. Its current profits show a tendency to rise 8.7 percent, which is well ahead of the most daring expectations of the leading stock analysts. In the second quarter of this year, Best Buy’s profits rose $250 million (in comparison with $230 million increase observed in the second quarter of 2006), or 55 cents per share (in comparison with last year's 47 cents per share). Circuit City (NYSE: CC), the closest rival of Best Buy, is ...
We are now used to frequent reports on contaminated products imported from China. But what about our domestic produce? Unfortunately, quality of foodstuff supplied by our food giants is not always perfect, either. Pesticide-laced cantaloupes, listeria-loaded chickens, poisonous peanut butter, contaminated spinach... now the list is even longer since ten U.S. states, including Maryland and Pennsylvania, have been recently included in the recall of e.coli - tainted ground beef, which was supplied by Cargill Meat Solutions Corporation, a Wyalusing, Pa., firm, to the biggest supermarkets, such as Weis, Giant, and Wegmans in Maryland. More than one million pounds of meat with use-by dates from October 19 to November 3, 2007 and stamped with number 9400, were contaminated with one of the most dangerous strains ...
As a corporation represents a legal entity, it does not suffer from frailties of human beings - for example, it cannot die by itself, but only because somebody has made efforts to put an end to its existence. A partnership can be terminated if a partner dies, but, in contrast, the death of a shareholder, even the shareholder who possesses and controls a considerable percentage of the shares, will not effect either the very existence or the normal operation of a corporation. For example, if two people were carrying on a partnership business and both were killed in a traffic accident or a plane crash - the partnership would automatically be dissolved. In contrast, if two people formed a corporation together with each possessing 50% of the ...
If your business is located in the state of Texas, here are the most important requirements you will have to meet in order to form a corporation:
- Name of your business: should contain one of the following words (or their abbreviations): "Incorporated", "Corporation," "Limited" , or "Company", and should clearly indicate, or hint on, the purpose outlined in the articles of incorporation. It may not be either the same, or closely resembling, the name of any other foreign or domestic corporation, nor can in contain the word "Lottery". Interestingly enough, Texas is famous as one of the toughest U.S. states ...
In the end of September, it was announced that a Canadian giant “Thompson Corporation” had purchased a Barcelona-based company “Prous Science”. The price of the purchase was not disclosed.Prous Science is a strong Spanish company, which supplies life sciences to both professional and business customers from all over the world. It was established in 1958, and has provided scientists with information on drug development and drug innovations ever since. Its web portal contains data on over 265,000 biologically active compounds and almost 100,00 records about family patents. Currently, the staff of Prous Science exceeds 180 employees. Within the Canadian corporation, Prous Science will become a part of the huge electronic media company “Thomson Scientific”.
Thompson Corp., ...
On September 21, 2007, Spherion Corporation published a press-release with the results of an employment report that had been conducted among California workers. The results of the survey, conducted on behalf of Spherion Corporation by Harris Interactive(R), show that California workers are less satisfied with their employment opportunities than two months ago. More workers find it difficult to find a job in California, which is confirmed by the decrease in the Employee Confidence Index that dropped almost three points in August. Only sixty seven percent of employees are confident in their ability to keep a job with their current employer.A top-ranking Spherion executive links the results of the survey to the end of seasonal summer opportunities in the California job market. However, he adds that ...
Corporate tax stands for a tax imposed on the corporate profits, and it can greatly vary between jurisdictions. The system of corporate taxation is very complex, and there are certain advantages and disadvantages for an individual taxpayer who decides to incorporate his business. The main advantage is that a shareholder can leave the funds in the corporation and use them as a vehicle of investment, thus avoiding some taxes until a later date. However, if losses are experienced, which usually happens when the business if young, a taxpayer is better off if the business in not incorporated so that the losses cannot be applied directly against personal income.In the U.S., although the federal corporate rate accounts to 35%, the “check the box” system, which was ...
There are a number of advantages associated with incorporation, most of which are based on the fact that the corporation is a separate legal personality. Today, let us have a look at the topic of limited liability - one of the most prominent pros of incorporation, at least at the first look.
As the corporation represents a separate legal entity, its shareholders are not liable for corporate debts and obligations - in other words, the corporation is fully responsible for its own wrong conduct. The shareholders’ liability is limited only to the amount they have paid for their shares. If the corporate assets are not sufficient to satisfy the obligations, the debt cannot be derived from the shareholders.
In view of the above, there is no doubt that limited ...
“An ounce of prevention is worth a pound of cure”
When you enter in a business with another person, you do not expect that your business will break down because of a dispute. However, in a corporate environment which involves shareholders and more than one partner, just like in a marriage, everything is possible - your partner(s) might get injured, divorced, or may die. This is why, in order to reduce the negative outcome of a possible business break-up in a future, it is crucially important to be legally prepared for any stressful situation that can arise between you and your business partner(s).
First of all, surround yourself with a team of professionals, such as accountants, financial advisors, marketing experts, and, of course, good lawyers. Before starting incorporating ...
