Let's talk about what a corporation is and what its purpose is for us as individuals. The history of corporations is very interesting. The rise of the modern corporation came about over 500 years ago because expeditions across the Atlantic or around the Cape of Good Hope were too expensive for sea captains to finance themselves. If a ship failed to return, the owner would qualify for
debtor's prison; if an owner died before a ship returned, his creditors might not be paid. Thus, European kings and queens charterd corporations, "creatures of legal sovereignty," named after the Latin word
corpus, which means
body.
The corporation embodied creation, and imbued life into many an inanimate business venture. These new fangled corporations could own property, outlive its human members and succeed them, and borrow or lend money. The monarchs had designed these new institutions to carry out the policies that they found too risky to undertake themselves. This incredible forsight solidified the foundation for what is now the financial industries largest singular asset.
The institution which is todays modern corporation has: enveloped the globe, produced previously unheard of personal freedom and an exponentially increasing level of technology. Fortunately, we don't have to go to the King to get a corporation today. In the early 1800's, states began offering corporations that had blanket charters, so that anyone who met the legal criteria would be granted the powers of a company.
Despite over 500 years of evolution, corporations still hold true to their ancient purpose: to shield individuals from the risk of their business ventures, provide asset protection and to serve as a vehicle for obtaining capital. The intrinsic nature of a corporation is to seperate the person from their business interest. This seperate legal entity can be effectively leveraged to provide, what industry insiders term, asset protection. However, just because you've incorporated doesn't automatically grant you asset protection. What good does it do you as a business owner to have a corporation if you still have to personally guarantee everything? That doesn't give you much separation does it? We need to keep our business and personal lives separate!
A corporation is a legal business entity that is given many of the same rights as an actual person. Corporations may consist of a single person or a group of people, known as sole corporations or aggregate corporations, respectively. Corporations exist as virtual or fictitious persons, granting a limited protection to the actual people involved in the business of the corporation. This liability minimization, is one of the many advantages to incorporation, and is a major draw for smaller businesses to incorporate; particularly those involved in a highly litigated trade. Help yourself get on the fast track to success today by separating your personal and business credit! Our team of experts is the best in the industry and they are standing by now for you to make the change you need to go to those next levels in business. Start protecting your family now and start to sleep again at night.
