What is a Corporation?
Everyone has heard of corporations, but the details of their operations are less widely known. For example, many people use the terms business, company, and corporation interchangeably. In fact, a corporation is a specific type of business that must meet certain registration and tax requirements. If you are starting a business or considering changes in your current business, you may want to explore the possibility of registering as a corporation.
There are two main distinctions between the different kinds of business: their level of legal liability and the kind of taxes they must pay. An experienced Des Moines business formation attorney can help you research each option and choose the one that is best for you. To learn more, contact LaMarca Law Group, P.C. at (877) 327-2600.
How Corporations Work
The most famous corporations tend to be very large multinational entities, but a corporation can also be a small business. It can be run by one person (a sole corporation) or a team of partners (an aggregate corporation). The main feature that distinguishes corporations from other businesses is the way they are viewed by the law.
Legally, a corporation is considered a person, separate from the people who own it. This can be good in the event of lawsuits, as they will be filed against the corporation and not its executives. In other words, if you run a corporation, your private income and assets will not be used to pay any damages in a lawsuit; only your corporation’s income.
There are non-stock corporations, but most issue stock to people willing to invest in the company. In return, stockholders are given some say in how the company is run. Corporations are usually run by a small group of stockholders known as the board of directors. This group is charged with making decisions about the company’s future and electing a chief executive officer.
Contact a Des Moines Corporate Lawyer
If you are running or planning to start a corporation, you will need experienced legal counsel to help you avoid lawsuits, tax difficulties, and other legal troubles. Contact knowledgeable Des Moines corporate attorneys LaMarca Law Group, P.C. at (877) 327-2600 to learn more.