Most of us believe that all corporations are large companies worth billions and employ thousands of professionals and specialists. Although these two do apply to many corporations, there are some that are smaller whose operations involve different varieties of work. Another thing many don’t know is that there are different types of corporations. What are they and how do they work? In this piece, we’ll be going over the basics of corporate law and the different varieties of them.
If you own a corporation and require legal assistance with your operations or a similar situation, then contact our corporate lawyers in McAllen today!
The most important thing to know about a corporation is that it’s a legal entity created under state law for the purpose of offering a service and profiting from it. In other words, they’re created to do business. Corporations are seen under the law as similar to individuals in that they can be sued by or sue another party for any sort of wrongdoing. Also, corporations are separate from their owners and stockholders.
Corporate law is a legal branch that oversees the intricacies of legalities that go into doing business as one of these entities. Corporations can be subject to federal and state regulations in order to enjoy tax benefits and other related remunerations. When a legal issue arises that involves a corporation, certain topics, such as employment law, contract disagreements or disputes, product liability and more, are all addressed through corporate law, which is where an attorney comes in.
The Different Types of Corporations
As we mentioned above, there are several types of corporations. These include:
- Basic Corporation – This is an entity that can either be closed or public. If closed, then very few people own it without stock being publicly traded. If it’s public, then stocks are traded on the exchange.
- S – Corporation – This type of corporation only has a small amount of shareholders and enjoys certain tax benefits, however, they lack stock options.
- C – Corporation – These corporations have an unlimited number of shareholders who are protected from the company’s liabilities.
- Limited Liability Corporation (LLC) – This is a popular option for many entrepreneurs due to LLCs exempting personal belongings from business-related debt. There’s also much flexibility in the organization and management of day-to-day operations, among others.
- Non-Profit Corporation – These entities are formed for the sole purpose of serving the public rather than making a profit for itself.
Helping Your Corporation
If your corporation is currently dealing with a legal issue of any kind, then we want to help. With a strong understanding of corporate law and the use of many proven legal strategies that can help you reach the positive conclusion you need, we’re more than confident that you’ll be satisfied with working with us. Contact our corporate lawyers in McAllen today to learn what we can do for you.