According the legal dictionary an incorporated company is formed with the approval from the state in which the corporation is being formed. This corporation is an artificial person, that is someone who does not exist. The organization can sue and be sued, that is unless it is non-profit. A corporation can sell shares of stock if needed. An corporations liability is limited to its assects, so the owner or the shareholders are protected from personal claims unless they commit fraud.
Nontax issues include Responsibility for Liabilities, and Rights, Responsibilities, and Legal Arrangement among Owners. The responsibility for liabilities depends on the type of entity CCS chooses. “Under state law, a corporation is solely responsible for its liabilities. Similarly, LLCs and not their members are responsible for the liabilities of the business” (15-3). General partners, organized as a Partnership, are fully responsible for liabilities while Limited partners are not.
A C Corporation is considered an entirely separate entity and those that make up the company such as officers, directors, managers, and shareholders are not personally liable for the acts of the company. This is the main advantage of a C Corporation. A disadvantage is that profits of the corporation are taxed at two different levels. One at the corporate level and then another on the dividends of the shareholders. · Liability-A C Corporation has limited liability in that it is seen as a separate entity from the owners, which in turn protects their personal assets from being taken to pay for the company’s debt or liability losses.
N.L.R.B. v. FRIENDLY CAB CO., INC., 512 F.3d 1090 (9th Cir. 2008) OPINION by CALLAHAN, Circuit Judge: Congress enacted the National Labor Relations Act ("the Act") to protect the right of employees to participate in collective bargaining for the purpose of negotiating the terms and conditions of their employment. In an effort to avoid an application of the Act and its concomitant collective bargaining requirement, Friendly Cab Company, Inc. ("Friendly") maintains that its taxicab drivers are independent contractors, rather than employees, and are therefore excluded from the protections of the Act. After conducting an unfair labor practice proceeding, the National Labor Relations Board ("NLRB" or "Board") concluded that Friendly's taxicab
Due to the business having such high risk liabilities it needs to be an entity in and of itself which is what this type of incorporation will allow. The process is quite simple to be incorporated; the proper paper work must be filled with the secretary of state where the business is established. When a business is incorporated as a C-corporation it becomes an entity of itself and no longer is financially tied to the owner/s. The client was very concerned about the many liabilities that the company could possibly face. As a C-corporation the business, not the owner, would be held liable for any financial damages.
1. From a tax perspective, and disregarding other issues such as limited liability, does it always make sense to operate businesses in a separate business entity? When might it be better to be a sole proprietor? The issue here is if it always makes sense to operate businesses in a separate business entity and when might it be better to be a sole proprietor. According to Smith, Harmelink & Hasselback.
PAC funds are the employees of the corporation who wish to support candidate to voluntary contribute to the election. These funds were limited by federal regulations previously provide by Austin v. Michigan Chamber Of Commerce case of 1990, and McConnell v. Federal Election Commission case of 2003. Austin v. Michigan Chamber of Commerce, was a case in which the Supreme Court of the United States held that the Michigan Campaign Finance Act, which prohibited corporations from using treasury money to make independent expenditures to support or oppose candidates in elections. Similarly McConnell v. Federal Election Commission decision justify the constitutionality of Bipartisan Campaign Reform Act. In which regulate spending corporations and unions.
| Tinker & Tailor’s Home Security Service (LP) | In a limited partnership only the general partner is fully liable. While the limited partner | Tinker & Tailor’s Home Security Service, Inc. (corporation) | In corporations the owners or shareholders are liable,
awrtuaworu artoawruor ouwropwauirawr powuerpo;;awrtja;wej;l.. Accounting Principles Business entity principle: Every business is accounted for separately from its owners personal activities. Going concern principle: The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless the evidence shows that it will not continue. Objectivity principle: The accounting guideline that requires financial statement information to be supported by independent , unbiased evidence
The Foreign Corrupt Process Act focus is on the purpose of the payment as an alternative of the exact functions of the officials receiving offer, the payment or promise of payment, and there are exceptions to the anti-bribery stipulation for "facilitating payments for routine governmental action"; the last is ‘Business Purpose Test' Here the Foreign Corrupt Process Act does not allow payments made in order to help the firm in retaining or obtaining business with or for directing business to, any person. The Department of Justice interprets retaining business broadly such that the term encompasses more than award or renewal of a contract. Notice that the business to be retained or obtained does not need being with a foreign government instrumentality. The Foreign Corrupt Process Act prohibits corrupt payments through intermediaries says it is illegal to make a disbursement of cash to a third individual, all through knowing that a portion or all of the payment will go indirectly or directly to a foreign official. The term "knowing" included conscious disregard and intentional ignorance.