- How does the original purpose…of a corporation apply today?…There were and still are two key purposes in forming…a corporation, joint ownership and limited liability.…Let me start with joint ownership.…Let's go back to the merchant ship as an example.…If you were a single merchant trying to find…a better source for rare spices,…you'd have to make a tremendous investment.…The odds of success were slim,…but the payoff for success was massive.…Only a few people had the wealth to single-handedly…undertake the risk of losing that much money.…
So, the formation of a corporation allowed businesses…to share ownership with other investors.…The effect was to share the financial risks,…as well as the rewards.…We call this issue joint ownership.…When it comes to joint ownership,…I try to get entrepreneurs…to start with these considerations.…Will you have multiple owners, like a partnership,…or will you have investors?…If you're operating a business as a single owner,…or husband and wife, and you don't have shareholders…or investors, you can simply be a sole proprietor.…
DISCLAIMER: This course is taught by an attorney and addresses US law concepts that may not apply in all countries. Neither LInkedIn nor the attorney teaching the course represents you and they are not giving legal advice. The information conveyed through this course is akin to a college or law school course; it is not intended to give legal advice, but instead to communicate basic information to help viewers understand the basics of intellectual property.
- Determine the purpose of a fictitious business name (FBN).
- Distinguish between types of entities.
- Identify required components for setting up a corporate entity.
- Recognize elements in bylaws.
- Interpret the purpose of federal tax identification.