BUSINESS FORMATION LAW

This section provides information related to the numerous laws that affect business entities, including laws that apply to businesses generally as well as laws specific to the various business forms.

Although the term “corporation” is frequently used as a catch-all term to relate to any business entity, a corporation is a specific type of business entity, which is subject to different rules and laws than other types of business entities. In fact, a business entity may take any number of forms, and small start-up companies may begin as a sole proprietorship, partnership, limited liability company or limited liability partnership, all of which are different types of business entities that can be formed in virtually all states. The common thread that connects the various types of business entities is the fact that the law recognizes the existence of the entity and treats the entity as a legal "person" that has standing to sue and be sued, separate and apart from its stockholders, members or owners.