Published on January 11
What is a Corporation?
A corporation is a business organization which is chartered by a state (known as the state of incorporation) in accordance with the state’s incorporation statute. In the eyes of the law, a corporation is a separate person – just like you and I are separate people. A corporation can own both personal property and real property, sue, be sued, commit crimes, be victimized by crimes, make decisions, hire and fire employees and give gifts. Unlike general partnerships and sole proprietorships, a corporation is a “going concern”. The lifetime of a corporation can be perpetual and completely separate …
Added in Corporations
Published on January 7
What is the Sarbanes-Oxley Act?
The Sarbanes-Oxley Act of 2002, also known as “SOA” or “SOX” is a congressional act with established a series of laws aimed at improving corporate governance, reducing corporate fraud, and eliminating deceptive accounting practice. The main provisions of Sarbanes-Oxley can be divided into three categories:
Accounting Oversight: One of the primary reforms of Sarbanes-Oxley was the creation of the Public Company Accounting Oversight Board.
Corporate Governance Reforms: Sarbanes-Oxley includes a series of reforms …
Added in Corporations, Large Corporation, US Laws
Published on January 7
What is a Professional Corporation?
A professional corporation (“P.C.”) is a business entity formed under special state statutes which allow people that would otherwise not be able to organize as corporations to receive most of the benefits of the corporate form, subject to certain additional limitations. Under the Revised Model Business Corporation Act and the law of most states, certain professions, such as doctors, lawyers, accountants, and architects are prohibited from forming corporations for the purpose of practicing their profession because of a fear that organizing as a corporation would allow them to limit malpractice liability. Unlike an ordinary corporation, professionals …
Added in Corporations
Published on January 7
A Not-For-Profit Corporation Is Not Automatically a Tax Exempt Organization.
There is often confusion between a not-for-profit corporation and a tax exempt organization. They are not necessarily one in the same. A not-for-profit corporation is organized under the law of a state for non-profit purposes. A tax exempt organization is a designation granted by the Internal Revenue Service of the Federal Government.
What is a Tax Exempt Organization?
A tax exempt organization is an entity granted immunity from taxation by the Federal Government in accordance with §501 of the Internal Revenue Code of the United States (26 U.S.C. §501). There are numerous types …
Added in Corporations, Taxation
Published on January 7
In certain situations, shareholders may find it advantageous to enter into agreements with other shareholders regarding how the company should be run or who will run the company. These agreements, known as “shareholder agreements” or sometimes “vote pooling agreements” or “block voting arrangements” are generally permissible and can pertain to a variety of topics. The specific rules governing shareholder agreements varies from state to state, however most states follow some version of the Revised Model Business Corporation Act (“RMBCA”). Section 7 of the RMBCA states the rules regarding shareholder agreements.
The most common types of shareholder agreements are:
Voting …
Added in Business Entities, Corporations, Helpful Business Info, Large Corporation
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