Business Abbreviations: Inc.

In certain ways, businesses are actually defined by the abbreviations that follow their names: LLP, LLC, Inc, etc. As a business owner, you should be familiar with what these abbreviations stand for, and what they could mean for your company. These seemingly unimportant tags actually describe the way the company is set up and how it operates. Sometimes, your business could actually benefit from being restructured.

For more information about how to best structure your business, contact the Austin business attorneys of Slater, Kennon & Pugh Ltd.LLP, by calling 512-472-2431.

The Corporation

Inc. actually stands for “incorporated,” meaning the company in question has been structured as a corporation. A corporation is a unique form of business structure in which the company is owned by a collection of shareholders. That is, each person owns stock in the company, making him or her effectively a part-owner.

The other main distinctions of a corporation are:

• The business is run by delegated management; that is, a board of directors is elected to run the day-to-day operations of the company on behalf of its investors.
• The shareholders have only limited liability in the company, which means should the company become devalued, each shareholder is only responsible for the amount of money they purchased in stock, not for any other debts incurred by the company.
• The corporation is considered a separate legal entity under the law. This allows the company to sue or be sued as though it were a person.
• The corporation has shares listed on a stock market. The exception to his rule is when the corporation is a closely held corporation, in which the shares are in the hands of a small number of partners.

Contact Us

If you're interested in learning more about how incorporating your company can be beneficial for business, contact the Austin business lawyers of Slater, Kennon & Pugh Ltd.LLP, by calling 512-472-2431 today.