Information on Corporations

In the United States, people can create a variety of businesses based on their needs, resources, products and services offered, as well as many other factors. One of the types of businesses they can create is the corporation. A corporation is a business that is a legal person. That is, in the eyes of the law, a corporation is a business that, for legal purposes, is separate from the people that own it.

As a result, a corporation’s finances are separate from those of the people who hold it, who cannot directly be held liable if the corporation is sued. Another important fact about corporations is that ownership of corporations occurs through shares, or parts of the corporation.

United States law allows for many classifications for corporations.

• For example, corporations can be either for-profit or non-profit. A for-profit corporation is a more traditional business seeking to maximize profits, while a non-profit corporation engages in non-profit activities through the medium of business.
• Another type of corporation is the mutual benefit corporation. Mutual benefit corporations exist only for the benefit of the members of the corporation. A golf club is one example.
• Corporations can also be classified as publicly traded or privately held. Publicly traded means that anyone can but shares of a corporation, and privately held means that the public does not engage in the buying and selling of shares.

As the above information on corporations reveals, there is a lot to learn and to consider when forming a corporation. Moreover, the legal process can be very difficult to navigate.

Consult an Austin Business Lawyer

If you are considering opening a corporation or any other type of business, you will need the help of attorneys to meet all of the legal requirements. Whatever type of business you seek to establish, contact the Texas business lawyers of Slater Kennon & Jameson, LLP by calling 512-472-2431.