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Why would a large corporation become an LLC?
Generally it wouldn't. A corporation already has limited liability, so owners (stock holders) are only liable for their investment in the company and their personal assets cannot be seized if the company fails.
Only one person is liable if the business fails?
proprietorship
What does OI stand for?
operations Invester
What are the main reasons why corporation is separated from its owners?
The separation provides protection to the shareholders in the event corporation's liquidation. The shareholders are not liable more than the worth of their investments in the corporation.
What is the most important difference between a corporation and all other organization forms?
The most important difference between a corporation and other organization forms is that a corporation is a separate legal entity from its owners, providing limited liability protection to shareholders. This means that shareholders are not personally liable for the debts and obligations of the corporation.
Characteristics of a corporation?
Limited LiabilityStockholders, who are owners of the corporation, are not liable for its debts or acts. The premise of separate legal entity means that the no one represents or acts on behalf of the company as it represents itself. In instances where a corporation is being wound up, the shareholders are only liable up to the unpaid amounts of their shares.
Is one characteristic of a corporation is that its owners are personally liable for any losses incurred by the business?
no
When is a corporation liable for the acts of its officer?
In English law, a corporation can only act through its employees and agents so it is necessary to decide in which circumstances the law of agency or vicarious liability will apply to hold the corporation liable in tort for the frauds of its directors or senior officers. If liability for the particular tort requires a state of mind, then to be liable, the director or senior officer must have that state of mind and it must be attributed to the company.
Who is responsible for a corporation debt?
the corporation
Can a creditor freeze your corporate bank account?
I wouldn't think so, because the whole idea of a corporation is that it is a separate entity unto itself. Example: the shareholders/officers of the corporation are not personally liable for the debts of the corporation. Therefore, why would the corporation be liable for the debts of the officers/shareholders?
A disadvantage of organizing a business as a sole proprietorship?
If your business fails with debts you are personally liable. You only have yourself to blame.
As an corporation, am I responsible or liable for depositing employment tax?
Yes, you are responsible for depositing employment tax. The liabilities for the tax are split between the corporation and the business owner
