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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
What was Lee v Lee's Air Farming Ltd case?
Mr Lee was a pilot who operated a crop dusting business. Mr Lee formed the corporation, Lee's Air Farming Ltd. Its main business was aerial spraying. He was the director and owned most of the shares(he held 2999 of the company's 3000 shares). As director of the corporation, he hired himself as an employee of the corporation. As one of the administrative tasks in setting up the company, he acted as its agent in setting up insurance, including workers' compensation insurance. The corporation's plane crashed while Mr Lee was flying it as part of his work, and he was killed on the job.
His widow, the plaintiff, attempted to collect what was rightfully due to a widow of a man killed on the job. The actual defendant was the insurance company.
The main question in the case was whether a person could be both a director and major shareholder of a corporation, on the one hand, and also an employee of the corporation, on the other.
Previous cases, beginning with the Salomon case, had confirmed that a corporation has an existence separate and apart from its shareholders and directors. The exceptions to that principle are gathered under the rubric, 'Piercing the Corporate Veil.' Where a corporation is a mere sham, the law can cut through the veil of corporate legitimacy, and reach into it for the shareholders and directors.
The Lee's Air Farming case confirmed the Salomon principle. Lee's Air Farming Ltd. was not a mere sham. It was a legitimate corporation, established for legitimate purposes, and had carried on a legitimate business. His employment by the corporation was well-documented, through government records of tax deductions, workmens' compensation contributions, etc., and was not something his widow had attempted to piece together after the fact of his death. There was no reason in law why a person could not perform corporate functions and employee functions within the same corporation. it was held that 'L' was a separate person distinct from tha company hence compensation was due to the widow
** Click the link below for the Privy Council's full decision in the case.
When a corporation receives a dividend from another corporation how is it taxed?
Dividends are income to the receiving corporation. If it is a sub-chapter S corporation, it is income to the shareholders, as is any other income of the corporation.
How do you change your corporation from Wyoming to Louisiana?
If you are planing to move to Louisiana you can still have your corporation incorporated under Wyoming rules.
The easiest way would be to incorporate new company in Louisiana.
How do general partnerships and limited partnerships and limited liability partnerships differ?
PARTNERSHIP; Partnership arise whenever two or more persons co-own a business, and share in the profits and losses. Each person contribute something to the business something to the business such a ideas, money or property.
Rights and personal liabilities will vary according to the type of partnership taken.
there are three types of partnerships
1) General partnership, 2) Limited partnership, 3) Limited Liability Partnership
GENERAL PARTNERSHIP; General partnership is the relationship between two or more persons carrying on the business in common with a view to profit. General partnership share equal rights and responsibilities in connection with the management of the business, and individual partner can band the entire group to the legal obligation. each individual partner assume full responsibility for the debts of the business.
LIMITED PARTNERSHIP; A partnership may be formed in which the liability of at least one partner (general partner) is unlimited, and the other partners liability for the debts of the company is limited to their capital contribution.
the rules are as follows.
1) Limited partner may not withdraw their capital.
2) Limited partner may not take part in the management of the business.
3) Limited partner can not bind the business into agreement with the third party.
4) The partnership must be registered with the company house.
LIMITED LIABILITY PARTNERSHIP; This kind of partnership is particularly used for professional partnership.
LLP is similar to Limited companies, but the liability of the partners are limited to their capital contribution.
LLP have the same requirements for governance and accountability as limited companies has, these are setup by the firm of professionals such as accountants and lawyers.
The main advantage of LLP over traditional partnership is that LLP is liable for its own debts rather then partner debts.
When can i register my company as Sdn Bhd?
You can register your company as Sdn Bhd, when any of the following criteria meets:
- 2 Individual resident director.
- 1 certified corporate secretary
- Registered address office
How many garnishments are allowed at one time in Indiana?
In most cases, there can't be more than one garnishment at a time in Indiana. An attorney can help you if you think you are being garnish unfairly.
What are the disadvantages of teamwork in a workplace?
Maximizing success in your department and at your company can be as easy as encouraging and rewarding teamwork. But is building a successful team really that easy?
When you think of successful teams, what first comes to mind are probably sports teams. Hey, how about those Boston Red Sox? After more than eighty-five years, they finally once again became World Series Champions in 2004. It took the right combination of players, attitude, talent, management and the support of loyal fans. Surprisingly, the Red Sox had not achieved success at this level since 1918, before one of the greatest hitters of all time, Babe Ruth, was sold to the Yankees. Surely, the "curse of the Bambino" can't be all about teamwork, can it?
Maybe. Teams need to be nurtured.
The "sports team" analogy has been translated to business since the 1960s and it quickly increased employee productivity and empowerment at organizations such as Procter & Gamble. People were jazzed about the opportunities and new life that teamwork breathed into old hierarchical structures. What about today? Are we nurturing teams in the workplace or are they becoming more obscure, lost in a sea of technology that allows us to "connect" without connecting?
Teamwork advantages
Working in strong and effective teams can give you a competitive advantage and improve productivity and morale. Remembering the four stages of team development can help you assess where your work group falls: * Forming. Forming a team is the stage that transforms individual to member status. At this stage, leadership guidance is tested. * Storming. This is typically the most challenging stage of team development. When team members come together they may disagree on actions and feel a lack of progress. * Norming. At this stage, team members begin to accept one another as part of the team and roles and ground rules are defined. Conflict may be reduced as relationships that were competitive become more cooperative. * Performing. A team that is performing has reconciled relationships and individual roles and expectations. Team members work together to diagnose, problem solve and implement change.
What is the yearly cost of owning a LLC in Florida?
The fee for filing an annual report for an LLC in Florida is $50.
How do you incorporate a business?
In most U.S. states, a business corporation is started by one or more people, known as "incorporators", who craft a business idea and bylaws for an organization. Initial directors and officers are elected or appointed and official papers are prepared for filing with the Secretary of State in the state where the incorporators choose the corporation to be domiciled. Formalities vary from state to state, but typically require a unique name of the corporation, a statement of purpose (charter), identification of any authorized stock, initial board and officers, the fiscal year, the address of the office (or resident agent), and one or more signatures by authorized incorporators or their attorney. Once the papers are filed, with the necessary fees, and inspected and accepted for conformity with the local requirements, the new entity is created.
At the first directors meeting, shares (if any) are distributed, officers appointed, bylaws ratified, and capital investments acknowledged. The shareholders may then meet to elect a new board or change the bylaws, and the new board (or shareholders) may elect or appoint new officers in preparation for carrying out the purposes of the business. Other housekeeping issues involve obtaining a federal tax-ID and filing for any licenses or exemptions needed by the corporation.
Periodic meetings and filings are required to maintain any corporation in "good standing", typically every year or whenever anything important changes in the board, company mission, etc.
Incorporation is the process by which one or more persons may form a limited company. There are many reasons why you might want to incorporate a company in the US, but the four most common reasons include:
- To create a legal entity;
- To provide some protection for the name of the enterprise;
- To provide limited liability to its members;
- To provide perpetual existence
Individuals or groups wishing to operate as corporations in any state of the USA are required under State Company Acts to file the appropriate forms with their respective Secretary of State, Corporations Division.
Incorporation establishes your business as a distinct, legal entity, offering you a number of advantages including business name protection, transferability of business ownership, limited liability and possible tax advantages.
Registration Process
The following steps provide the procedures needed to incorporate a new company in the USA with the Secretary of State. To form a new corporation, you must provide a corporate name and address, describe the structure, identify the 'type' of corporation and provide director information. The following information is provided to assist you in this process.
In the USA, company incorporation is done by filing an Articles of Incorporation with the Secretary of State, Corporations Division.
Step One is the Name Search and Approval
If you are creating a company with a name, the first step in incorporation is to ensure the proposed name of your company is available. To check the availability of your name, you must obtain a name research and approval. If you are creating a numbered company the Corporations Division Office will assign it a number that it can use as a name. In that case, no Name Research and Approval is required.
A company's name must be unique in the State of Incorporation. To prove its uniqueness, you must obtain a name search and approval. This search is used to confirm that no one else has a business or registered trademark with a name as, or similar to, the one you have chosen. The name of an incorporated company must end with one of the following designations:
- Limited
- Incorporated
- Corporation
The following abbreviations of the above are also acceptable:
- Ltd.
- Inc.
- Corp.
Step two Articles of Incorporation are completed
Articles of Incorporation are legal documents that establish your business, and must be approved by the government before you do business under that business name.
Once your name has been approved the next step is to complete the Articles of Incorporation and submit it to the Secretary of State, Corporations Division, with the appropriate fees. All documents received are placed in the order they were received and checked to see if they have been completed properly and that they do not violate any provision of the Companies Act.
If your application is approved the Corporations Division Office will register your company by filing a copy of the articles in the register and issue you a certificate if incorporation as proof that registration has ocurred.
The third step is the payment of the necessary fees to file your application for incorporation.
AnswerYou may want to call your local county building and find list your business name.Then go to your "State web sit"and type up under search"Limited Liability Company" and "Corporation"Then read and even call them if you have any Questions.By opening a business you will have a lot more advantages to recover any expenses that you incure, fuel, lodging, food,Items and lots more.It is very easy to do this your self, You do not have to pay an Attorney Tons of money to just fill out papers.Once you have established a Company name, and placed it with the state you live in, your now a company.Review your options on whether to just be "Limited Liability Company"If you do not have any employees or few employees this is probley your best bet.By being a "Limited Liability Company" like me. "WHPLSH.LLC"I have protected myself from my personal life finances and bank accounts. My company is a separate entity from my personal finances.Good Luck CliffRememmber to read as much as posable and do not be affraid.What is a form that enables stockholder to allow someone else to vote for them?
a proxy is a legal form lising issues to be decided at a stockholders' meeting and enabling stockholders to transfer their voting rights to some other individual or individuals.
Inform customer of new ownership letter?
letter sample to advice one client skodtec elevatorr llc that we are transferring the building to the new owner and we are no longer connection on this builing
What is the difference between Bank guarantee and Counter guarantee?
A bank guarantee is a guarantee issued by the bank to the beneficiary that the bank will make payment in case the bank's customer does not make payment to the beneficiary or in case of non-performance of an obligation or contract.
A counter guarantee is a guarantee taken by the bank from the bank's customer which ensures that the bank's customer is liable for any expenses including costs of attorney, any interest on delayed payment, taxes and other levies in case of invocation of the bank guarantee. It is a sort of security for the bank. It is always a good practice for a bank to take counter guarantee from its customer.
What is defect liability period in contract?
A period of usually twelve months following practical completion, during which the employer can require the contractor to return to the site to complete any omissions in the works and to make good any defective work or materials. When all omissions and defects have been made good, the contract administrator or Employer's Agent must issue a certificate or statement of completion of making good defects.
Difference between country of incorporation country of domicile?
Incorporation test is a citizen of state or country by or under the laws of which it was created and exists without regard to the citizenship of its stockholders or members; Business domicile test, the business has the nationality of the state where it has its business domicile.
What to do when your business partner entered the partnership fraudulently?
Take the partner to court to preserve your interests, and disolve the partnership.
Can the officer of a company also be on the board of directors?
A director of a company is an officer of that company.
"For Management Movement to develop it is essential that there should be emphasis on participative management." Analyze this statement in the context of present management scenario, citing examples.
yes
