Essay on Building A Business Through A Corporation

753 Words Nov 15th, 2016 4 Pages
Since the beginning of civilization business has been a very important aspect to human life. In fact, the importance of business is so great that it has caused for a substantial demand for various types of businesses to arise in order to fit the needs of society as time passes and standards change. At this point in time, people wishing to establish a new business have multiple options to consider. For instance, one could choose to establish a sole proprietorship, a partnership, a limited partnership, a limited liability partnership (LLP), a limited liability company (LLC), or a corporation. Each of these options are excellent, however, in some cases one tends to be a better fit for the business at hand than the other options may be. When considering forming a business through a corporation there are many aspects that need to be well understood. First off, understanding that, “a corporation is a legal entity established by individual(s) under the laws of a state to conduct particular types of business or transactions,”1 is extremely important. Once that is acknowledged, one must continue on to learn that, “the corporation exists separately from its shareholders, directors and employees.”1 Therefore, “a corporation is a 'person ' in the eyes of the law. [It] . . . functions in the same manner as a person and has the same rights and responsibilities as a person, [meaning] the corporation may make contracts, assume liabilities, sue and be sued.”1 In order for the corporation…

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