Setting Up a Corporation

->status. They include having a board of directors
A corporation is a legal entity that separates thethat is responsible for the operation and
persons owning or operating a business from thegovernance of the corporation in accordance with
actual business itself. They are set up to protectthe state in which it is incorporated. Shareholders
individuals from a range of possible damages andof the corporation elect the board of directors
obligations that might occur as a result of doingand the board then assume what is called the
business. Unlike other forms of businessfiduciary responsible to put the interests of the
registration the owners of a corporation have nocorporation first in all decisions and deliberations.
responsibility for the debts of the business andMost corporations have a Chief Executive Officer
their liability is limited to the number of shares thator President who is the spokesperson for the
they hold in that corporation.corporation in all public matters and a treasurer
Corporation law has been around for a long timewho is responsible for maintaining the good
and the oldest corporation in the United States isfinancial health of the organization. Other officer
the Harvard Corporation which was established inpositions may be created by the corporation as
1650 to look after the business affairs of Harvardprovided for under the applicable corporation law.
University. The act of incorporation is the basic ofCorporations are created by filing articles of
all corporation law and in addition to providedincorporation with the government and these
limited liability for owners and shareholders thisarticles contain information about the general
type of business registration is very common forintent of the corporation, the number of shares
all large and medium sized companies in the Unitesthat the corporation intends to issue and the
States.addresses and names of corporate directors.
Along with the provision of limited liabilityAfter approval by the regulatory body the board
corporation law also sets out a series ofof directors of the corporation meets to create
standards and regulations that corporations mustthe bylaws of the corporation and proceed to
adhere to in order to maintain their incorporatedopen for business.