Day-to-Day Activities

Day-to-Day Activities

There are not many differences between running a corporation and any other type of business. The most important point to remember is to keep the corporation's affairs separate from your personal affairs. The corporation should not make frequent loans to its shareholders, and funds of the corporation and individual shareholders should not be commingled. Funds taken out or put into the corporation should be documented. The decision of whether these should be salary, loans, dividends or otherwise, should be made with the help of an accountant based upon your financial situation.

Another important point to remember is to always refer to the corporation as a corporation. Always use the complete corporate name, including designations such as Inc. or Corp., on everything. Always sign corporate documents with your corporate title. If you do not, you may lose your protection from personal liability. There have been many cases in which a person forgot to put the word president after his or her name when entering into contracts for the corporation. As a result, the person was determined to be personally liable for perform­ance of the contract.

  • Corporation: Introduction
    Each year, hundreds of thousands of corporations are registered in this country, and it is not a coincidence that the largest businesses in the world are corporations. The corporation is a popular method of doing business for most people because it offers many advantages over partnerships and sole...
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  • What is a Corporation?
    A corporation is a legal person that can be created under state law. As a person, a corporation has certain rights and obligations, including the right to do business in its own name and the obligation to pay taxes. Some laws use the words "natural persons." A natural person refers only to human...
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  • Articles of Incorporation
    The Articles of Incorporation (in some states referred to as the Certificate or the Certificate of Incorporation) is the document that is filed with the appropriate state agency to start the corporation. In most states, this agency is the Secretary of State but may be called the Department of State...
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  • Shareholder
    A shareholder is a person who owns stock in a corporation. In many small corporations, the shareholders act as the officers and directors, but many shareholders do not have these roles in large corporations. Sometimes small corporations have shareholders who are not officers, such as when the stock...
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  • Board of Directors
    The board of directors is the controlling body of a corporation that makes major corporate decisions and elects the officers. It usually meets just once a year. In most states, a corporation can have one director (who can also hold all offices and own all the stock). In a small corporation, the...
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  • Officers
    Officers are appointed by the board of directors to run the day-to-day operations of the corporation. Commonly, and by law in many states, a corporation will have at least three officers: President Treasurer or Chief Financial Officer Secretary Officers do not have to be shareholders or directors,...
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