Incorporating is a major step for any business. It comes with many benefits, and chief among those benefits is new powers that your company otherwise may not have. With these new powers comes great additional benefits. If you have recently incorporated, it is important to understand what your corporation is capable of doing.
One such power is perpetual duration. Unless the articles of incorporation say differently, every corporation has perpetual duration and succession in the corporate name. This provides stability to outside parties. Further, the corporation now takes on the powers of an individual, and can, in its own capacity, take on different tasks and powers as if it were an individual.
The corporation has many other powers as well, including that fact that it can sue and be sued in its corporate capacity. This is important because corporations can avail themselves of limited liability. The corporation can have a corporate seal, which provides stability and respect to outside parties. It can also make or amend the bylaws, so long as they are not inconsistent with the articles of incorporation. The corporation can purchase or hold property in the corporation’s name, which can make it easier to deal with outside financial institutions because a corporation is more likely to have credit extended to it. The corporation can then purchase or dispose of any interests in another entity as it wishes.
The corporation also has many financial powers. For example, it can make contracts in the corporation’s name. As stated, this is where the limited liability of a corporation can help protect its constituents. Corporations can lend money to both inside and outside parties. A corporation can be any type of member in another partnership. Corporate entities can also conduct business inside and outside of the state, so long as it is consistent with other state provisions. They can elect directors and appoint offices, pay pensions to its constituents, make charitable donations on behalf of the corporation, transact any lawful business, and make payments or donations that further the affairs of the corporation.
In essence, the powers of a corporation are near limitless. Many of these powers are unavailable to individuals or other business forms. That is why your company should consider incorporating. Consulting with the right legal team can help ensure proper incorporation for your company. Call the Trembly Law Firm at (305) 431-5678 today to schedule your consultation. For years, the Trembly Law Firm has assisted small businesses incorporate and take other major steps in its business capacity. Let the Trembly Law Firm help you today.