A Quick Guide To Incorporating Your Business In California
Perhaps the most significant distinction between a corporation and the other forms of commercial organizations is that it is legally recognized as a single entity. As a result, a corporation can be sued separately from its owners and managers as a legal entity. Even if the business fails, this protects the owners and management from personal disaster.
That's said, let's discuss what a corporation is and what incorporation can do for you, as often overseen by our Anaheim Business Law Attorneys in California.
What Qualifies As A Corporation In Anaheim?
1. The Number of Owners
The only stipulation is that there must be at least one owner. With the exception of one form of corporation acquiring another type of corporation, a corporation's number of owners is generally infinite.
Traders and investors can purchase stock in a company traded on the stock market and claim ownership.
While the personal liability of sole proprietorship and partnership owners is unlimited, the liability of corporation owners is limited to their investment. In other words, if a corporation goes bankrupt, a shareholder's loss is limited to the amount invested. Therefore, they are not held accountable on a personal level.
To learn more about business liability in corporations, consult an Anaheim Business Law Attorney to help you sort things out.