Corporations and Limited Liability Companies (LLC) are formed to shield owners from personal liability for the debts and obligations of their businesses. One of the major differences between a corporation and an LLC is that they have different federal tax liabilities. Corporations are incorporated according to the state laws and the owners are shareholders, who [...]
A Shareholder Meeting is presided over by the Chairman. The Chairman has the responsibility of coordinating the meeting unless the Chairman assigns this responsibility to someone else. Below is a list of formalities that must be followed at a shareholder meeting. 1. Participants’ List: Preparing a comprehensive list of the participants of the meeting is [...]
Corporate Resolutions are the record of the actions, motions or proceedings undertaken in the Board Meeting and the shareholder meeting. Generally, companies record the decisions, taken in the meeting of the Board of Directors or shareholder meeting, for future reference. Recording of the proceedings isn’t mandatory but it is a good idea. The Board of [...]
A business credit profile is how companies or individuals evaluate whether or not they want to do deal with a company. Maintaining a good profile helps not only to expand the company, but also to get credit. However obtaining business credit can be difficult. Business credit has become a daunting task for many business owners. [...]
Credit is a common way out for people in financially difficult situations. These financially difficult situations can be either business related or personal. Financial institutions have designed programs to bail out the customers from financial ruts. The credit terms for business and personal matters are completely different. Financial institutions also provide business credit through credit [...]
Based on many financial and technical factors, corporations are categorized into different types. Of these categories, two key types of organizations are ‘C Corporations’ and ‘S Corporations.’ A ‘C Corporation’ or a ‘C-Corp’ is a corporation that qualifies for the taxes under the Sub chapter C of the Internal Revenue Code of the Internal Revenue [...]
What is a Credit Rating? What are the benefits of a good rating? What are the consequences of a bad rating? How does a company improve its rating? The answers to these questions are vital to the survival and growth of any corporation. Credit is an indicator that reflects how well a company manages its [...]