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Incorporation
Incorporation is the act of selling out shares of a company to generate revenue. Questions about incorporating, companies that are or will incorporate, or companies that are already incorporated can be asked here.
1,040 Questions
In the United States can one company be an employee of another company?
Only humans can be employees.
The employees of a subsidiary company are also the employees of the parent company, unless the subsidiary is unusually and intentionally independent.
Can you own a limited liability company?
Not all businesses can operate as LLCs, however. Businesses in the banking, trust, and insurance industry, for example, are typically prohibited from forming LLCs. In addition, some states, including California, prohibit professionals such as architects, accountants, doctors, and licensed healthcare workers from forming LLCs.
People can own membership interests in a limited liability company, but do not directly own the assets of the LLC. If an LLC has a single member (which is now possible in all 50 states and the District of Columbia), you could say that the member "owned" the limited liability company, although technically he or she only owns the membership interest, not the LLC itself.
Privity of contract its binding effect on third party?
Privity(stranger cannot sue) to contract:Legally recognized relationship between two parties.
Only the parties to a contract owe duties to one another & realize any benefits under the contract. The contracting parties also have the ability to sue one another for breach of contract. Privity of contract can also be given to 3rdparties through delegation of duties.
General concept: As general rule of contract a stranger can give consideration but cannot file sue.
Exception:When a stranger can file suit?
In case of trust the beneficiary can-file-sue:
A father(settlor author) gives his property to Trustee with trust deed. After then, Son (beneficiary) come in trust for take property, but trustee don't give property to him. In this situation, Son( beneficiary) can file sue against(upon) trustee, even though he is "stranger"
In case of family settlement agreement:
E.g. A & B get married A's father agreed with B's father to pay Rs. 5000 per month to B [daughter-in-law]. Later, father-in-law refused to pay money to B. Here, 'B' can file sue upon A's father.
In case of acknowledgment (to admit something) given by third-party:
E.g. Debtor pays Rs. 10,000 to agent and promises to pay the money to creditor. Here, creditor can file sue upon agent if does not pay.
Estoppel: "stop from denying"
"Once you have confirmed something you cannot cancel it"
In case of convent (condition) running(attached) with land:
If any dues of government is outstanding in respect of land/ recover it from the buyer of land & building.
In case of marriage agreement: [see just as point no.2]
An agreement made without consideration is void.
"No consideration No contract"
General concept: Generally, it is said that "if there is lack of consideration, there will be no contract"
E.g. "An elder brother agrees to pay Rs. 10,000 to his younger brother." Suppose, elder brother fails to perform the promise. Can younger brother take legal action?
No, because it is a social agreement and not support by consideration.
Exception: There are 5 situation in which there is no consideration even though there is contract:
Agreement based upon natural love & affection [attachment]: An agreement based upon love & affection will be valid if all of these conditions are satisfied.
The promise must be written.
It must be signed by promisor.
It must be registered.
It must be based upon nature love & affection.
There must be near relation between parties.
E.g. Husband agreed in writing to pay Rs, 5000 per month to his wife. The agreement is signed & registered. Husband referred that there was several/frequent disputes between the couple, after 2 months the husband stopped payment.
The court held there is no love & affection between parties. So, this agreement is void.
Agreement to compensate for past-voluntary-services (P.V.S)
E.g. X finds Y's purse and gives it to him. Y promises to give rs.500 to x. this is a valid even though the consideration did not move at the desire of Y, the promisor.
E.g. X a neighbor helped putting down the fire in Y's house. Afterwards, Y promised X to give Rs. 1000. This is a valid contract even though the consideration did not move at the desire of the promisor.
This agreement is valid, because if following conditions: Writing, sign by promisor, and P.V.S
Promise to pay T.B.D i.e. Time-barred-debt[Period-prohibited-loan]
A debt which limitation period is over i.e. 3 year from the due date/default date. E.g. A debtor agrees to pay rs. 1000/- to creditor out of Time-barred-debt of Rs. 10,000/-
If this agreement promise is in writing, signed, then it will be valid.
According to law of limitation, a debt which remains unpaid or unclaimed for a period of 3 years becomes a time barred debt which is legally not recoverable. But a promissory note issued in personal capacity by the wife of a debtor to pay his time barred debt of her husband is not enforceable.
Agency agreement [relation of principal & agent]: No need of consideration
Completed gift: The gift actually made by a donor and accepted by the donor are valid even without consideration. Thus, a completed gift needs no consideration.
E.g. X transferred some property to Y by a duly written and registered deed as a gift. This is a valid contract even though no consideration moved.
Can a person be secretary and vice-president of a compaqny at the same time?
In the United States, yes. You only have to have one person to incorporate now, so the one person can be every officer in the company. But you'd only have a vice-president if you had a president.
How the partnership helps on business?
There are more minds usually with different set of skills, when you put these skills together you can run a business successfully.
Can a S corp be owned by a C corp or can a LLC be owned by a C corp or S corp?
Yes, yes, yes. Tax issues get fun when consolidating between entity types. The answer is too long to type. Pay a CPA.
If your salary is 15000 and you own your corporation can you contribute all 15000 to a 401k?
here are other plans, like an SEP that would suit you better...and considering your asking...I doubt your corporation has established a 401k...which has a lot of qualifications and administrative costs.
In 2007 the total of both employee and employer contributions is limited to the lesser of 100% of your compensation or $45,000 - that's an increase of $1,000 from 2006. Once again, in 2009 these limits will be adjusted for inflation and moved-up in $1,000 increments. In fact, total contributions in 2008 were increased to $46,000. This total contribution limit includes pre-tax and after-tax contributions. We've outlined these 401k limits for you in general terms. The rules for 401k plans are complex and they depend on a number of factors including your salary, overall employee participation, and pre-tax versus after-tax contributions. Questions specific to your 401k plan can be addressed by your employer's program administrator.
Para el nuevo empresario Que es mas combeniente Franquicia o negocio?
An empresario was a person who, in the early years of the settlement of Texas, had been granted the right to settle on Mexican land in exchange for gathering and taking responsibility for the new settlers.
Which empresario launched a revolt against Mexican authority?
Haden Edwards. He said that he wanted Texas divided in 1/2 for Native Americans & Americans which caused the Mexicans to go to Texas with Mier y Teran, former mexican citizen. I learned it at TX history, which im in right now 2012-2013
What is corporate and non-corporate form of business?
A corporation is an artificial person, legally independent of its owners and/or operators. The owners of a corporation are its shareholders.
A business that is not a corporation legally is just its owners and operators, usually in the form of a sole proprietorship or a partnership.
If someone sues a corporation that is as far as it can go, they cannot sue either the owners or operators.
If someone sues a business that is not a corporation they are automatically suing all the owners and operators.
There are now also other options that limit the ability to sue the owners and operators, but are not corporations (e.g. LLC or LLP).
In this precedent, the owner of a timber company insured the timber in his own name, then incorporated the business. Not long after the incorporation, a fire broke out and destroyed the insured property. As such he tried to claim but was held to have no insurable interest in the property anymore: it belonged to the company which had a separate legal personality. This was despite the fact he was the sole shareholder and was also a creditor of the company to a large extent.
What sources of law would affect to govern the process of incorporation?
business
You may want to check the web site of the Secretary of State of the state where you wish to incorporate for guidance.
By definition it means something surrendered or subject to surrender as punishment for a crime, an offense, an error, or a breach of contract. In big businesses today, specially in import and export, this transaction is widely used. How this works is, the importer posts an order to the exporter to be delivered at a specific date but the latter does not have enough financial resources to accomplish the order. The importer then deposits the amount of the order to its bank. This bank then notifies the exporter's bank that said amount is available and exporter can now loan the amount to finance the production. However, if the exporter fails to deliver the order in time or the products do not meet the importer's specifications, the importer has the option to withdraw its deposit. The exporter does not get paid and has to deal with the loan from its bank. This is forfeiting.
What is Clayton's case in banking law?
Clayton's Case (1816) decided that where there is a current account between a debtor and a creditor and neither one appropriates the payments made, then those payments are attributed or appropriated to the earliest debts. ie - payments are made against the oldest debt unless the debtor prescribes otherwise.
What are the sources of business law?
Business law includes leases, contracts, secured transactions, incorporation, securities law, commercial litigation, insurance law, and so forth.
Some types of this law is statutory. In other words, legislative bodies create this law. Other types have their origin in the common law, such as contracts.
Business law serves several purposes. One reason is to facilitate the smooth operations of business. Businesses need to be able to have confidence in their dealings with other individuals. Also, it allows businesses to recover for losses and damages that they incur from other people and businesses.
By Matin KhanA bill of guarantee is a joint guaranty that takes on the liability. It is also known as a bill guarantee.
Why is planning important for managers?
Managers need to plan in order for the organisation to run, their plans are needed for the future and thus to avoid risk or other conditions that might let to the downfall of the organisation. Without a plan, fail will emerge.
What day did Federal Way incorporate become a city?
It became an official city in 1996. Until then it was a King County unincorperated city
What is the difference between an Administrative Officer and Administrative Manager?
An Officer is a person who has authority to bind the corporation. A manager is simply an employee who has supervisory authority over some employees and may or may not be an officer of the corporation.
Under what circumstances a partnership can come to an end?
Partnership can come to an end by the following reasons. If they mentioned the validity to be a partner in the firm, under the partners mutual willingness to terminate himself from de partnership and if any partner misbehavied in a firm others can revoke that partner from the firm
