Q&A Business

What is a corporation?

A corporation, according to Black’s Law Dictionary, is a legal entity created by or under the authority of the laws of a state. It is an association of persons created by statute as a legal entity. The law treats the corporation itself as a person who can sue and be sued.

The corporation is distinct from the individuals (shareholders) who comprise it. The corporation survives the death of its investors, as the shares can usually be transferred.

When does a corporation begin living?

To bring a corporation to life, a person (an incorporator), must file the articles of incorporation. The articles of incorporation represent the official documents for starting up a new company.

Unless a delayed effective date is specified within the articles of incorporation, the corporate existence begins when the articles of incorporation are filed with the secretary of state.

Who are incorporators?

In Michigan, one or more individuals age eighteen or older may be incorporators by executing the articles of incorporation (or with the assistance of an attorney) to the Secretary of State.

How can you name a corporation?

To incorporate in Michigan, you must file the articles with the State, along with the corporate name, which must have in the name the word “Corporation”, “Incorporated”, “Limited” or “Company” or the abbreviations “Corp.”, “Ltd.”, “Co.”, or “Inc.”.

What is a Limited Liability Company?

A Limited Liability Company is a cross between a sole proprietorship/partnership and a corporation. Which means that if offers limited personal liability like a corporation and less formality, like a partnership or sole proprietorship.

How is a Limited Liability Company formed?

In most states, including Michigan, a Limited Liability Company is formed by filing a form of articles of organization with the state.

How does a Limited Liability Company work?

A Limited Liability Company works in that the people who form the L.L.C. are known as Members. The Members usually enter into an operating agreement to govern the company’s internal affairs and operations. This agreement remains confidential and does not get filed with the state.

 
By | 2017-10-24T05:01:44+00:00 October 15th, 2014|Business Law, Information Center|Comments Off on Q&A Business