What is a Not-for-Profit Corporation? A not for profit corporation is one specifically formed for purposes other than operating a profit-seeking business. Examples of not for profit companies are ones with charitable, religious, education, or scientific purposes. The purpose of the organization and the structure of the organization will determine whether a not-for-profit corporation will qualify for tax exemption status under 501(c). → Read More
Are Business Owners Required to Provide Health Insurance to Employees? Business owners are generally not required to provide employee health insurance. However, the new health care reform laws put into place by the Obama administration encourage employers to provide health insurance to employees. The Health Care Reform Act, which goes into effect in 2014, will penalize businesses with over 50 employees that do not provide employee health insurance. However, this penalty costs business owners less than the cost of employee health insurance benefits, so the effects of the new law remain to be seen. Further, many states have proposed legislation that would prohibit the new mandatory health insurance rules from applying to employers. → Read More
What are public purpose corporations? The general definition of a public purpose corporation or public benefit corporation, is a corporation chartered by the state, usually formed to perform a government function. Some states define a public purpose corporation as any non-profit or charitable corporation, even if it is created by private parties. → Read More
What is a Closely Held Corporation? What is a Publicly Held Corporation? A closely held corporation or a private corporation is one that is owned by private individuals who do not trade or sell their shares of ownership. This is in contrast to a publicly held company. Typically, closely held corporations are not subject to the same stringent reporting requirements as most public corporations. → Read More
Common Forms of Business Ownership that Reduce Personal Liability Starting a business is a difficult decision filled with many choices. It is a complicated process that involves everything from choosing a name to deciding whether to offer stocks. One of the first decisions you have to make as a business owner is about the legal structure of your business. Click here for details about common forms of businesses. → Read More
Do You Need Insurance for Your Business? The term “business insurance” encompasses the many different types of insurance available to protect businesses, business owners, and employees of businesses. As a new business owner it can be stressful to think about the additional costs involved in getting your business up and running. However, every business owner should have some basic types of business insurance. → Read More
What is a Professional Corporation (PC)? Professional Corporations, or PCs (also called Professional Service Corporations)were created to allow certain kinds of professionals (e.g., doctors, lawyers, accountants, engineers, and so forth) to do business as a professional corporation. → Read More
What is a General Partnership? In business, when you hear the word “partnership,” it normally refers to a general partnership. In a general partnership, there are two or more partners. Each is liable for any debts or judgments taken on by the business. There is no limited liability, which means all the partners’ assets can be taken in a lawsuit or be targeted to settle debts should the partnership become insolvent. Any partner can be sued for the full amount of business debts. → Read More
What are Some Common Types of Partnerships? The most common types of partnerships include a partnership, limited partnership, limited liability partnership, and limited liability company. The type of business that you operate determines issues such as the extent of personal liability that you have from the business and how the business is taxed, among other things. → Read More
Benefits of a General Partnership A general partnership can provide a business with structure and control in addition to other benefits. In most general partnerships, profits are shared equally among the partners. Typically, partners will sign a contract at the commencement of the general partnership which outlines how profits and losses will be divided. As asset protection vehicles, general partnerships are not an ideal choice, since they do not offer limited or severable liability. Each partner is responsible for the actions and liabilities of every one of the other partners. A general partnership is intended to distribute risk as well as managerial flexibility. → Read More
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