Setting Up a Corporation

tart -->of directors that is responsible for the operation and
A corporation is a legal entity that separates thegovernance of the corporation in accordance with the
persons owning or operating a business from thestate in which it is incorporated. Shareholders of the
actual business itself. They are set up to protectcorporation elect the board of directors and the board
individuals from a range of possible damages andthen assume what is called the fiduciary responsible to
obligations that might occur as a result of doingput the interests of the corporation first in all decisions
business. Unlike other forms of business registrationand deliberations.
the owners of a corporation have no responsibility forMost corporations have a Chief Executive Officer or
the debts of the business and their liability is limited toPresident who is the spokesperson for the corporation
the number of shares that they hold in that corporation.in all public matters and a treasurer who is responsible
Corporation law has been around for a long time andfor maintaining the good financial health of the
the oldest corporation in the United States is theorganization. Other officer positions may be created
Harvard Corporation which was established in 1650 toby the corporation as provided for under the applicable
look after the business affairs of Harvard University.corporation law.
The act of incorporation is the basic of all corporationCorporations are created by filing articles of
law and in addition to provided limited liability for ownersincorporation with the government and these articles
and shareholders this type of business registration iscontain information about the general intent of the
very common for all large and medium sizedcorporation, the number of shares that the corporation
companies in the Unites States.intends to issue and the addresses and names of
Along with the provision of limited liability corporationcorporate directors. After approval by the regulatory
law also sets out a series of standards and regulationsbody the board of directors of the corporation meets
that corporations must adhere to in order to maintainto create the bylaws of the corporation and proceed
their incorporated status. They include having a boardto open for business.