Corporations and LLCs do not necessarily have to disclose the names of people holding ownership interests in those entities within any public records. [ Read More… → ]

Whether or not foreigners or non-US citizen living in the USA and holding work-visas can create a Limited Liability Company or file for Corporation status depends upon the state involved. [ Read More… → ]

For the purposes for forming a general business Corporation or filing for Limited Liability Company (LLC) status, there are no requirements that a person be a resident of the state in which the company is to be formed.

But there is one requirement for most states that must be managed. [ Read More… → ]

The filing of the paperwork to form an LLC or to incorporate does not obligate the entity to immediately begin conducting business.

But as is typical, that doesn’t mean that there won’t be some government requirements for the formed business. [ Read More… → ]

A person starting a new corporation does NOT file for S-corporation status as the first order of business. [ Read More… → ]

If a Limited Liability Company (LLC) or Corporation is set up only to ‘hide assets’, a debtor could pursue legal action to pierce the corporate veil and seize the assets of the fraudulent LLC or Incorporation. [ Read More… → ]

Typically, an executive director or CEO can represent a corporation in day-to-day business functions. But the chief executive of a corporation or LLC cannot represent the corporation in a court of law, as legal counsel, or as part of a litigation. [ Read More… → ]

In just about every state, only one person needs to take the actions necessary to incorporate a business or to file for LLC status. But the requirements do differ by state. [ Read More… → ]

Nearly all states have laws permitting owners of an LLC or a Corporation to review the books and records of the company upon written demand to the other owners. [ Read More… → ]

Assets are transferred from one person or entity to another in different ways, depending upon the nature of the property. This distinction holds true when those assets are transferred between an individual and a newly formed Limited Liability Company or Corporation as well. [ Read More… → ]

Much of the ability of a government agency to easily seize or attach assets for issues like unpaid child support or unpaid taxes rests with the type of business structure created. [ Read More… → ]

No. Certainly two corporations can jointly own a piece of real estate, and a Quitclaim Deed can be created to reflect joint tenancy once a real estate purchase agreement is formalized.

But most states reserve ’survivorship rights’ for individuals, especially since corporate entities cannot die.

Trusts are structured with liability in mind, to keep the beneficiaries removed from the assets involved. Most Trusts are set up with personal property assets like land, or homes or vehicles, and their liabilities are somewhat limited. But some trusts hold assets like fully operating businesses, LLCs and corporations. So if a business held by a Trust ‘goes bad’, can the beneficiaries of that Trust become personally liable for any portion of the debt generated by any operational business assets within a Trust — especially if that debt exceeds the value of the assets in the trust? [ Read More… → ]

The use of ‘Inc.’ or ‘Incorporated’ within the business name for a limited liability company would be inappropriate in almost all states, and in most cases would prevent the filing of the LLC documents from being accepted by the secretary of state. [ Read More… → ]

“Ordering the book for subscriptions of stocks” deals with opening and closing the corporate books on the sale of shares to shareholders, typically at the time of incorporation.

This statement is a corporate formality so that ownership can be established. [ Read More… → ]

Corporations are owned by shareholders. Shares of stock can have “par value” or “no par value” — that is, a predetermined value of one share as set by the issuer at the time of incorporation.

Most corporations and shareholders opt for shares with “no par value”, and they do so for a variety of reasons. [ Read More… → ]

An individual can be a shareholder in more than one corporation (think of an individual owning shares of both Ford and General Motors), and as long as the corporations retain a completely separate existence (i.e. keep separate books and records, maintain separate bank accounts, etc.), merely owning shares in separate companies should not cause financial liability to flow between any of the entities.

Let’s use an example of a husband and wife who do not “mix finances”. The wife owns the house solely in her name, and the husband has a business solely in his name with debts both personal and under the business. They carefully keep completely separate bank accounts, credit card accounts, etc. [ Read More… → ]

Standard Legal Network is unaware of any restriction on ownership of shares of a Class C Corporation.

In fact, it is fairly common for an L.L.C. to be the owner of stock in a corporation.

Be aware, however, that under the IRS rules, a Limited Liability Company cannot be an owner of stock of a corporation that elects S tax treatment.

Get complete details here on Standard Legal’s Incorporation and LLC legal forms software here.