Content Related To 'Business Organizations'
In some states, a partnership may be formed as soon as two or more people associate to carry on as co-owners of a business for profit. In other words, no formalities exist when forming a legally recognized partnership in these states. The partnership agreement may be either expressly written or implied through the conduct of […]
Whether you are personally liable for the acts of other partners depends on what kind of partnership you are in. If you are in a general partnership, you are personally liable for all acts of the other partners. In a limited partnership, which has both general and limited partners, general partners are personally liable for […]
A derivative suit is one in which shareholders of a corporation sue the directors or officers for a failure of proper management. The suing shareholders are considered to be acting on behalf of the corporation because management has committed fraud or failed to protect the company’s interests. Some states require the shareholder to have been […]
The three types of corporations are class C corporations, class S corporations and close corporations. Class C, or general, corporations are the most common and are allowed an unlimited number of shareholders. Additionally, the income of a C corporation faces double taxation. First, the corporation pays income tax, and then shareholders pay personal income tax […]
The three main types of partnerships are general partnerships, limited partnerships and limited-liability partnerships. A general partnership may be formed expressly with a written agreement or, in some states, impliedly from the conduct of the parties. All partners in a general partnership are personally liable for acts of the other partners. A limited partnership has […]
Lea en español What is a Corporation? A corporation is a legal entity, set up under the guidelines of state law, which essentially stands in the place of its owners, who are known as shareholders. The corporation is customarily invested with powers to act as a person, to enter into contracts, to incur debt, to […]