Benefits of Incorporating a Company

The Advantages and Disadvantages of Incorporating a Business

        In order to mention all the advantages and disadvantages of incorporating a business, first I should try to explain what a sens is. In 1819, Chief Justice Marshall of the United States unequivocal court said: A passel is an artificial being, invisible, intangible, and alert except in contemplation of the law. In the Websters College Dictionary tidy sum is defined as an association of individuals, created by law and having an instauration apart from that of its members as well as distinct and intact powers and liabilities. A quite a little is divided into many units called sh atomic number 18s of stock. The owners of the stock are called stockholders or shareholders. One of the advantages of incorporating a business is that because a alliance has a legal existence, shares can be sold at any time without affecting the operations of the corporation. Also, shares can be bought at any time. Another big advantage of incorporating a business is that corporation have limited liabilities. This means that the corporation is responsible for its own acts and obligations under the law. This characteristic protects the stockholders of the corporation because the only financial loss that they may suffer is limited to the join invested.



Also, the creditors of the corporation can not go beyond the assets of the corporation to satisfy their claims.

        The stockholders or the shareholders are the ones who have control all over the management of a corporations operation and activities. They are the ones who elect the room of directors, and the board of directors are responsible to the stockholders. Also, the board of directors are responsible for the management of the day-to-day operation of the corporation. They also decide when and how such(prenominal) of their income to give to the stockholders or shareholders.

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