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The main objective of such a company, as a rule, will be to raise funds from many investors to carry out large projects that otherwise could not be realized. However, the contributions of these can also be non-monetary, as is the case with a property. Well, state-owned enterprises have a very strict regime in this regard. According to the terms of the Pan-Hispanic Dictionary of Legal Spanish, a company is defined as a commercial company in which it is divided into aliquot parts called shares, in which the partners are not personally liable for the social debt. 1120-W (Corporation only) To be eligible for S-Corporation status, the Company must meet the following requirements: The Company is a legal entity of a commercial nature within what the law calls corporations (along with the limited liability company and the limited partnership). To become a Type S corporation, the corporation must file Form 2553, Choosing a Small Corporation PDF, which has been signed by all shareholders. See the instructions in the PDF file for Form 2553 for all the information you need and where to file the form. As an individual, the limitation of liability is lost and the sole shareholder is personally and jointly and severally liable for the company`s debts. If you have an S-type business, you may be responsible for paying the (lot). If the conditions for incorporation are not met and, for example, the company becomes irregular and, as a partnership without limitation of liability, is not registered or published in the register. Referring to the name or corporate name under which the company is registered, it must be a term that has not been previously registered. It must also be accompanied by the acronym S.A. It should be noted that the legal regime of these companies is extremely complex, so it does not adapt to small businesses due to the features that we will see below.

The most interesting feature of companies, and therefore of the public limited company, is the limitation of liability, in which the obligations and debts that the company has react only to the company itself with its personal assets and not to its partners, who react only to the amount of contributions to which they have committed themselves to the company. In addition, a number of additional procedures are required, such as a certificate stating that the name of the company has not been chosen or the payment of capital. S corporations are businesses that choose to pass on income, losses, deductions and business loans through their shareholders for federal tax purposes. Shareholders of S companies report income and loss streams on their personal tax returns and are taxed at tax rates on their personal income. This allows S-type companies to avoid double taxation of the company`s income. Type S companies are responsible for taxing certain recorded profits and passive income at the company level. The share capital of a corporation consists of the sum of the total contributions made to the corporation. This administrative authority can be one or more natural or legal persons (one company can perfectly well be the director of another), but in the end, those who act are always the natural persons, because, as is clear, the company does not have the©opportunity to act itself, since its will is that of its partners and directors. However, if one or more persons form a company and contribute their own funds, capital, either by direct payment or by repayment obligation©, the obligations of the company are paid with this capital and only with it©, leaving the remaining assets of the shareholders safe.