Corporation

Question 1

Corporation

Answer 1

A corporation is a legal entity that exists separate from its owner, thus shielding the owners and managers from liability. Corporation could be closely or publicly held.

A publicly held corporation is typically publicly traded, has over 500 shareholders, over $10 million in assets, and it’s registered with the SEC. A closely held corporation typically has a small number of shareholders, no ready market for corporate stock, and a substantial majority stockholder participate in the management, direction, and operations of the corporation.

Question 2

Formation

Answer 2

A corporation existence begins on the date the articles of incorporations are filed with the SEC.

The AOL must contain:
1. Name of the corporation
2. The number of shares corporation is authorized to issue
3. A statement of purpose
4. Par value
5. The address of the corporations intial registered office
6. Name and address of each incorporate