GENERAL FACTS ABOUT CORPORATIONS
For your information…
The first trading corporations were established in the 1600’s by the English and the Dutch, but there are references of similar corporate models in ancient Rome and ancient India. In medieval Europe, churches became incorporated, as did local governments. The point was that the incorporation would survive longer than the lives of any member, existing in perpetuity.
The corporate business model was imported to USA from Great Britain, to stimulate the industrial revolution. Corporations could raise capital from diverse sources, providing an important method for savers and producers alike.
Corporations were formed for family-owned businesses that didn’t have enough capital to expand.
Corporations became legal in the United States in 1816 in New Jersey followed by New York’s first corporate law.
A corporation is a legally formulated company that’s separate from its owner. It can be taxed and held legally liable. Corporations offer the strongest protection to its owners from personal liability.
Limited liability allows people to avoid personal liability for the losses of a business entity. It also allows them to pool their resources to achieve their goals, allowing risk-averse individuals to assume risks they otherwise would not have undertaken.
Thus, you can achieve goals that would be unattainable by an individual and can last longer than an individual’s lifetime.