Read More – Corporations

Read More – Corporations

A corporation is a business entity that is registered as such with the Secretary of State. Under the law, a corporation acts as an artificial being and is able to transact business and initiate or be subject to litigation. Ownership of a corporation is accomplished by holding shares of stock in the corporation. By selling stock, corporations are able to generate funds to expand the business or to increase capital. The primary benefit in establishing a corporation is the liability shield that is provided to owners and members of the corporation. In essence, shareholders and officers of the corporation are protected from personal liability for claims against the corporation. This protection is not absolute, however. Under certain circumstances (usually related to fraud), officers and shareholders may be held personally liable for the conduct of the corporation.

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