BUSINESS FORMATION
A corporation is formed by the filing of Articles of Incorporation (the “Articles”) with the Secretary of State. Owners of the corporation are usually issued certificates representing the shares of stock issued by the corporation.

A general or “C” corporation is a separate tax-paying entity for federal and state tax purposes, as distinguished from the sole proprietorships, general and limited partnerships, most LLC‘s and Subchapter “S” corporations which are not. A corporation is subject to state income tax regulation, which generally conforms to federal taxation.

We have an established track record across a range of areas including the formation and administration of businesses, obtaining charitable status and incorporation at not-for-profit organizations and drafting and reviewing partnership agreements.

SHAREHOLDER AGREEMENTS
A shareholder agreement can also limit a stockholder’s actions after his/ hers shares are sold. The most important issues that are addressed by shareholder agreements are those that address stock ownership. A shareholder agreement can serve two important purposes with regard to stock ownership— it can control when a stock is sold and to whom. It can also limit a stockholder’s actions after his/her shares are sold.

In order to be enforceable, this provision must be carefully written so as to allow the selling share- holder a reasonable opportunity to make a living and not unduly restrict econaomic competition. For more information about other important provisions related to the operation of a business, contact Cartwright Law today.