The corporation laws in most states provide that a corporation shall hold an annual shareholders meeting. However, failure to hold an annual meeting does not invalidate corporate actions or business. In fact, there appears to be no real penalty for…
Traditionally, the management functions of a corporation were conducted by the corporate directors holding meetings and voting on various corporate actions and resolutions. This is one of the attributes that qualifies a corporation as a separate legal entity. In a…
Yes. Using an attorney is not required when filing a corporation or LLC. However, you do need to know your state filing requirements and how to prepare bylaws, minutes, stock certificates, etc., so that your corporation will be properly organized.…
Most state laws allow the formation and operation of a corporation by just one person. This is one of those questions that require looking at the specific state requirements of the state in which you plan to register your corporation.…
A “corporate seal” is a seal much like a notary seal but with the corporate name imprinted on it. In past years, corporate seals were used more frequently to authenticate corporate documents. In my experience, corporate seals are seldom used…
A “corporate kit” generally consists of a notebook for keeping corporate minutes and records, a supply of blank stock certificates, and a corporate seal. Many office supply stores and rubber stamp companies sell corporate kits as a convenient way to…
The main advantage of using different corporations or entities is liability protection. If different businesses are set up in different corporations and one of the businesses has legal troubles, it should not affect the others because each is considered a…
A corporation can do business in states other than the one it is registered in. However, most states have laws that say that if a corporation has substantial business contacts with the state itwants to do business in, it must…
Preemptive rights give an existing shareholder of a corporation the right to purchase a proportionate part of any new share issuance before the shares are offered to non-shareholders. The purpose is to prevent the dilution of your ownership percentage and…
The information requested by a bank to set up an account for a new corporation is generally not a matter of state law but rather the requirement of the individual bank. The best practice is to call the bank you…