Why are they so very important? All corporations are considered legal entities. Your corporation is formed underneath the laws of the state that it is incorporated within. Every state has its own unique set of laws that you’ll have to abide by, because of this some states are better for your corporation then others. Stocks, bonds, shares, and so on (Corporate securities) that are issued or sold are regulated under Federal law in accordance with the Act of 1933.
Alright I know all that but what exactly is a corporation? When you make your corporation you are essentially making a front man. A corporation has the ability to enter into contracts, sue, and be sued, which is all necessary to any business. This front man will protect each and every individual owner (stock, bonds, and share holders) from the liability and debt of the corporation as a whole. There are a few exception thou, such as unpaid taxes. Also your corporation aka the front man receives immortality. Simply put if any one individual is terminated or dies the structure of your corporation will remain unaltered.
Ok it looks like I’ll be needing a “corporation”. Can just anybody start a corporation? The person responsible for creating your corporation should be a person well trained in the field of commercial law. This person needs to be able to structure your stock and bond offerings as well the bank and insurance loans that provide enterprises with capital. This person will be helping you with licensing arrangements, joint ventures, acquisitions, mergers, and many other transactions confronted with your corporation. The subjects will consist of business tax consultation, internal form, business agreements, venture capital financing, formations, and security law.
That about sums it up ladies and gentlemen, I hope you enjoyed your introduction to cooperate law 101.