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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 signature block what does ITS mean?
"ITS", or "Its" is part of a document's signature block and follows the company name and person's signature. Eg: ABC Company, By: [signature], Its: [Title of person].
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Explain how common law has emerged into codified laws to facilitate and protect business?
Because of local and federal statutes in the United states , many believe that common law no longer exists. These codified laws are very much based on common law that was adopted in our nation from the time we were British Colonies. Common Law still does have jurisdiction in areas that are not covered by statutory or administrative law. If a business is in an area that is regulated by a statute, then the statute will apply in order to protect the business or its employees. Even though many statutes that regulate states and local government codify existing common law principles. Because common law was very general and based on judge's decisions on previous court matters, statutes became essential, but still codify existing common law. Even courts, before making a decision and interpreting the statutory laws, must use common law as guide to what legislators intended.
You can be registered with your state government to conduct business under a business identity, for instance, John Q. Smith DBA The XYZ Corporation (DBA = "doing business as") but unless the exclusivity agreements said exactly the same thing and placed the identical constraints upon you, you could be guilty of fraud and misrepresentation if the two agreements were in conflict.
Just because you are the principle in a corporation operating under a corporate identity doesn't shield you from the consequences of your actions. You are, after all, the same person in both instances.
Which is the best for business - sole proprietorship or partnership?
It purely depends on the number of owners that a business has. If the company has only one owner, then sole proprietorship will be the best bet and if the company has somewhere between two to twenty owners, then you can register your company under partnership model. Following are the common requirement for registering any type of business in Malaysia:
1. Business owner should not be a minor i.e. age of the owner should be above 18 years.
2. Business should operate in the premises of Peninsular Malaysia or Federal Territory of Labuan 3. Business should have a minimum paid up capital of RM1
Discuss the elements of valid contract?
the elements of contract are multifaceted and can be discribed by many in so many ways.
Hubbell Incorporated was a diversified manufacturer of electronic and electrical components, with 11,476 employees and sales of $1.59 billion in 2002.
Should i have a corporate bank account for my business in Singapore?
Most of teh "Big 5" banks operate business account that are functional across the world. When setting up a business in a new country its good policy to check with your base bank what arrangenment they ahve for trading in teh contry selected if you are currently operating outside that country and then to check cost bases for services taht will effect you
Where do you buy an Aged Corporation?
Aged Corporations or Shelf Corps can be found at Aged Corp Depot. Aged Corp Depot is a seasoned corporate consulting firm that sells seasoned corporations at wholesale prices. They mainly stock California and Arkansas corporations due to their tax laws and the ability to efficiently raise corporate credit.
Difference between option and stock appreciation rights?
Stock options enable recipients temporary rights to purchase a certain number of shares at a strike price determined by the grant date. Stock appreciation rights are bonus plans that grant employees awards based on the companyÕs stock value.
What kind of phone plans does ATandT Mobility LLC formerly known as Cingular Wireless LLC offer?
AT&T Mobile offers phone plans such as unlimited minutes for $69.99 a month and family plans that grant 550 minutes to each person at $59.99 a month for the entire family. They also offer unlimited talk and text data plans at $160 a month for 15gb.
To perpetuate is to make something last. An example sentence would be: They were trying to perpetuate their date as long as possible.
Company law is that branch of law which deals with the legal proceeding of the copany i.e incorporation of the compnay and filing the documents with the registrar of the company like memorendum and article of association. Regards Qaiss.
ability to make decisions when there r 4- 6 alternatives available.
A company goes public when share can be purchase by the general public. This usually means it must be listed ona stock exchange.
A cross-border merger is a transaction in which the assets and operation of two firms belonging to or registered in two different countries are combined to establish a new legal entity. In a cross-border acquisition, the control of assets and operations is transferred from a local to a foreign company, with the former becoming an affiliate of the latter.
How do you set up a private holding company?
Haha ! If I had know this answer, why would I open this page ever on the earth ...!
Does the articles of Incorporation in California need to be notarized?
LLC Operating Agreements
Corporations have bylaws. Partnerships have partnership agreements. With an LLC, the operating agreement controls how the company is run. Most importantly, it governs the relationship betweenthe owners.
LLC's are inherently very flexible entities. You can have passive investors and active managers. You can share profits and losses in proportion to ownership of stock, or in any other proportion agreed upon by the members.Determining Ownership--the LLC Operating Agreement
Your LLC's operating agreement spells out how much ownership each member has. Many companies choose to have ownership be proportional to capital invested. In other words if Member A invests $1,000 and Member B invests $2,000, then B will have twice as many shares as A.
However, you don't have to allocate ownership in proportion to capital contributions. A passive investor might contribute the majority of the capital, while a member that actively manages the company will own shares in excess of his capital contributions. For example, Smith, a passive investor, might invest $10,000 in the LLC in exchange for 40% of the shares, while Jones--the manager and visionary of the company--might contribute $5,000 in exchange for the other 60% of the company. Any combination can be chosen by the members.
Operational Control
Not only does the operating agreement control the ownership of shares in the LLC, it also spells out how voting operates. You could choose to have one share equal one vote. Or, the operating agreement could give each member an equal say regardless of the number of shares held.
The agreement will also spell out what constitutes a majority for making major decisions affecting your company. You will want to spell this out because each state's default rules are different.
For example, in Delaware, a simple majority of 51% is enough to allow a merger of the company. In some other states, it takes a two-thirds vote to approve a merger. You will want to decide yourself, based on your own circumstances, what number of votes are needed for major decisions like mergers and liquidating your LLC.
Succession Planning
No one wants to think about this when starting their company, but what happens if a member dies or retires? The operating agreement can provide, for example, that the remaining members are allowed the first opportunity to buy the leaving member's shares.
LLCs can protect assets by removing the voting power of shares taken involuntarily from a member. This is an advanced topic and you should consult an attorney on how to use LLCs for asset protection.
Protecting Limited Liability of Single Member LLCs
Some people believe that if you're a single member LLC, there is no need for an operating agreement. Afterall, the operating agreement is essentially a contract among members as to how they'll run the company. Why would you need a contract with yourself?
However, an operating agreement is useful because it can help preserve your company's limited liability status. If you operate your single member LLC without an operating agreement, then your business begins to look very similar to a sole proprietorship.
If that happens, then a judge could pierce your corporate veil under the alter ego theory, holding that your LLC and you as an individual are actually one and the same.
With a formal operating agreement, you make it clear that you as an individual and the LLC are two separate entities.
How to Write an Operating Agreement
Most online incorporation companies include a basic operating agreement for your LLC as part of the package.
