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Pros and Cons -- Corporations Lawyers
Pros and Cons of Operating Your Business as a Corporation
Corporations limit the liability of their owners. The selling and buying of stocks makes ownership easy to transfer and it's simple to add additional owners and investors. However, corporations are costly to set up and maintain. A corporation as a separate legal entity requires a separate tax return and corporations are also subject to double taxation.
Even though a corporation is not considered a citizen, it may still exercise some rights and privileges granted to natural persons:
- Right to Due Process and Equal Protection - Corporations enjoy the right of due process and equal protection according to the Fifth Amendment and the Fourteenth Amendment of the U.S. Constitution
- Freedom of Speech - Although some state interests may limit a corporation's freedom of speech, corporations can usually express themselves on matters of public importance regardless of whether it materially affects the corporate business or not
- Right to Counsel - A corporate criminal defendant has a Sixth Amendment right to counsel, however, since a corporate criminal defendant can not be physically incarcerated it does not have a right to appointed counsel if it can not afford it
- No Privilege Against Self-Incrimination - Corporations do not have a privilege against self incrimination
Should I Consult a Lawyer about My Business Management Structure?
The business organization laws vary depending on the state of incorporation. An attorney will help you determine what type of business structure is best for your organization. Timelines and deadlines for creating a business organization are generally strict in many states. A lawyer can assist you with following all the detailed procedural rules, contacting all the necessary state and federal officials, and adhering to the deadlines for organizing a business organization. Further, an attorney can give you advice as to the tax laws applicable to your business organization, and will help you follow the procedural rules of your state should you desire to dissolve.
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