complies with the formalities required for it to be treated as a separate legal entity, then anyone seeking to collect a debt from, or enforce a claim against, a corporation, would not be able to collect from the shareholders themselves. In terms of your own personal financial liability, it's very worthwhile. The shareholders still have to pay taxes on money that they receive from the corporation, but an S corporation does not pay taxes on its net income. What is meant by the constitution of the company? Cite weblastTeacher firstLaw urlp? Ultimately, a partnership can be remarkably cheap to set up as well. LegalZoom will create your business entity documents and file them with the appropriate state agency, and you'll receive your completed package by mail. .
A limited liability company, or LLC, is a business entity created under state law that combines characteristics of both a corporation and a partnership. Can your think of other problems? Kevin Mulligan, what Business Structure Should You Choose? If there were to be any damages incurred in the business, for example, the business cannot pay its bills, creditors could turn to the partners personal assets to pay up the debts. In this case, there are also pitfalls in partnership businesses. Read full article An introduction to corporations It's no coincidence that the largest businesses in the world are corporations. Nearly every general area of the law is relevant to running a business, and nearly every country has its own set of laws designed specifically to regulate business. Business structure: limited company. When youre a sole trader you also have personal responsibility for hiring your employees and unlimited personal liability for what those employees do in the course of working for your business.