The organization of a company
Saturday, April 5, 2008 | | |The main factors that affect how a company is organized are generally:
* The size and scope of the company and provides management and ownership. Generally, a small business is more flexible, while larger companies or those with wider ownership or more formal structures, tend to be organized as partnerships or (more commonly) companies. In addition, a company wishing to raise money on a stock market or to be owned by a large number of people will often be necessary to adopt a particular legal form to do so.
* The industry and country. Private for-profit companies are different from government-owned agencies. In some countries, some companies are legally obliged to be organized certain ways.
* Limitation of Liability. The companies, limited liability companies, and other types of organizations to protect their own corporate failures in carrying on business as a separate legal entity of certain legal protections. In contrast, unincorporated businesses or individuals working on their own are generally not protected.
* The tax advantages. Different structures are treated differently in tax law, May and have advantages for this reason.
* Disclosure and compliance requirements. Different structures May be necessary to do more or less public information (or reported to the competent authorities), May and be required to comply with different rules and regulations.
Many businesses are operated through a separate entity like a corporation, limited partnership or limited liability company. Most jurisdictions allow people to organize such an entity chartered by filing certain documents with the Secretary of State or equivalent and compliance with certain other obligations under way. The relationships and the rights of shareholders, partners or members are governed in part by the charter documents and partly by the law of the country where the entity is organized. Generally speaking, shareholders in a corporation, partners in a limited partnership, and members in a limited liability company are immune from personal liability for the debts and obligations of the entity, which is legally considered as a "person". This means that unless there is fault, the owner of property are heavily protected in law, if the company fails.
When two or more people own a business together, but failed to organize a more specialized form of vehicle, they will be treated as a partnership. The terms of the partnership are governed in part by a partnership agreement if one is created, and partly by the law of the country where partnership is located. No documents or deposit is necessary to create a partnership, and without an agreement, relationships and legal rights of partners will be entirely governed by the law of the country where partnership is located.
A single person who owns and operates a company is commonly known as a sole proprietor, if he or she holds directly or through an entity formally organized.
Some factors to consider when deciding how to operate a business include:
1. Partners in a partnership (other than a limited liability company), plus anyone who personally owns and operates a business without creating a separate legal entity, are personally liable for the debts and obligations of the company.
2. Typically, companies are required to pay taxes as "real". In some tax systems, which may give rise to the so-called double taxation, first of all because the company pays tax on profits, and then when the company distributes its profits to its owners, people to include dividends of their income when they complete their personal tax returns, to which a second layer of tax on income is taxed.
3. In most countries there are laws dealing differently small businesses than large. May they be exempted from certain requirements for filing legal or labor laws, have simplified procedures in specialized areas, and have simplified, advantageous, slightly different tax treatment.
4. To "make public" (sometimes called IPO) - which means to allow a portion of the company to be owned by a wider range of investors or the public in general - you must organize a separate entity, which is generally necessary to comply with a more strict laws and procedures. Most public entities are corporations that have sold shares, but increasingly there are also public who sell LLC units (sometimes also called shares), and other entities and more exotic (for example, the REITs USA, mutual funds in the United Kingdom). However, you can not take a great partnership "public".
[change] Commercial
Most commercial transactions are governed by a very detailed and well-established rules that have evolved over a very long period of time, as the case that govern trade and commerce is a powerful force in creating the law and the courts in Western civilization.
As for other laws that regulate businesses or impact in many countries, it is virtually impossible to chronicle all in a single reference source. There are laws governing the treatment of the workforce and, in general, employee relations, safety and protection issues (OSHA or health and safety), anti-discrimination laws (age, sex, disability, race and in some countries, sexual orientation), laws on minimum wages, Laws of the Union, labour laws, annual leave and hours of work or time.
In some specialized businesses, May also be necessary licences, either because of special laws governing entry into certain trades, professions or trades, which May need special education, or by local governments who want it is your money. Professions that require a license to execute the full range of law and medicine to fly planes to the sale of alcoholic beverages on radio to the sale of investment securities for sale of used cars for roofing. The May local courts also need a license and taxes only to operate a business without taking into account the type of activities concerned.
Some companies are subject to special regulation. These industries include, for example, utilities, securities investment, banking, insurance, broadcasting, aviation and health care providers. Environmental regulations are also very complex and can affect many types of businesses unexpectedly.
* The size and scope of the company and provides management and ownership. Generally, a small business is more flexible, while larger companies or those with wider ownership or more formal structures, tend to be organized as partnerships or (more commonly) companies. In addition, a company wishing to raise money on a stock market or to be owned by a large number of people will often be necessary to adopt a particular legal form to do so.
* The industry and country. Private for-profit companies are different from government-owned agencies. In some countries, some companies are legally obliged to be organized certain ways.
* Limitation of Liability. The companies, limited liability companies, and other types of organizations to protect their own corporate failures in carrying on business as a separate legal entity of certain legal protections. In contrast, unincorporated businesses or individuals working on their own are generally not protected.
* The tax advantages. Different structures are treated differently in tax law, May and have advantages for this reason.
* Disclosure and compliance requirements. Different structures May be necessary to do more or less public information (or reported to the competent authorities), May and be required to comply with different rules and regulations.
Many businesses are operated through a separate entity like a corporation, limited partnership or limited liability company. Most jurisdictions allow people to organize such an entity chartered by filing certain documents with the Secretary of State or equivalent and compliance with certain other obligations under way. The relationships and the rights of shareholders, partners or members are governed in part by the charter documents and partly by the law of the country where the entity is organized. Generally speaking, shareholders in a corporation, partners in a limited partnership, and members in a limited liability company are immune from personal liability for the debts and obligations of the entity, which is legally considered as a "person". This means that unless there is fault, the owner of property are heavily protected in law, if the company fails.
When two or more people own a business together, but failed to organize a more specialized form of vehicle, they will be treated as a partnership. The terms of the partnership are governed in part by a partnership agreement if one is created, and partly by the law of the country where partnership is located. No documents or deposit is necessary to create a partnership, and without an agreement, relationships and legal rights of partners will be entirely governed by the law of the country where partnership is located.
A single person who owns and operates a company is commonly known as a sole proprietor, if he or she holds directly or through an entity formally organized.
Some factors to consider when deciding how to operate a business include:
1. Partners in a partnership (other than a limited liability company), plus anyone who personally owns and operates a business without creating a separate legal entity, are personally liable for the debts and obligations of the company.
2. Typically, companies are required to pay taxes as "real". In some tax systems, which may give rise to the so-called double taxation, first of all because the company pays tax on profits, and then when the company distributes its profits to its owners, people to include dividends of their income when they complete their personal tax returns, to which a second layer of tax on income is taxed.
3. In most countries there are laws dealing differently small businesses than large. May they be exempted from certain requirements for filing legal or labor laws, have simplified procedures in specialized areas, and have simplified, advantageous, slightly different tax treatment.
4. To "make public" (sometimes called IPO) - which means to allow a portion of the company to be owned by a wider range of investors or the public in general - you must organize a separate entity, which is generally necessary to comply with a more strict laws and procedures. Most public entities are corporations that have sold shares, but increasingly there are also public who sell LLC units (sometimes also called shares), and other entities and more exotic (for example, the REITs USA, mutual funds in the United Kingdom). However, you can not take a great partnership "public".
[change] Commercial
Most commercial transactions are governed by a very detailed and well-established rules that have evolved over a very long period of time, as the case that govern trade and commerce is a powerful force in creating the law and the courts in Western civilization.
As for other laws that regulate businesses or impact in many countries, it is virtually impossible to chronicle all in a single reference source. There are laws governing the treatment of the workforce and, in general, employee relations, safety and protection issues (OSHA or health and safety), anti-discrimination laws (age, sex, disability, race and in some countries, sexual orientation), laws on minimum wages, Laws of the Union, labour laws, annual leave and hours of work or time.
In some specialized businesses, May also be necessary licences, either because of special laws governing entry into certain trades, professions or trades, which May need special education, or by local governments who want it is your money. Professions that require a license to execute the full range of law and medicine to fly planes to the sale of alcoholic beverages on radio to the sale of investment securities for sale of used cars for roofing. The May local courts also need a license and taxes only to operate a business without taking into account the type of activities concerned.
Some companies are subject to special regulation. These industries include, for example, utilities, securities investment, banking, insurance, broadcasting, aviation and health care providers. Environmental regulations are also very complex and can affect many types of businesses unexpectedly.
