Frequently Asked Questions on Corporation Definitions in Los Angeles
The Definition of a Corporation and the Laws in Los Angeles: Essential for Business Owners2 min read
The definition of what a corporation entity is and the laws that apply to it are some of the most important considerations for business owners in Los Angeles. If you are one of the city’s entrepreneurs, odds are you have a series of questions regarding the facets associated with the topic. This article seeks to address the most frequently asked questions about corporation definition in Los Angeles and provides guidance from business lawyers who specialize in the subject.
Answering What Corporation Definition Is
The first stop when determining the corporate definition of a Los Angeles business is to visit the definitions in the OCLC Volume 16 (“Organization on Commercial Law & Corporations"). This manual defines corporations to be for-profit entities against non-profit entities and defines how the organization operates and its relationship to its stakeholders.
Specifically, the OCLC classifies a corporation as a legal entity that is owned by shareholders, owned and managed by those same shareholders, and liable for all of its obligations to those shareholders. To be classified as a corporation, there must also be separate legal personality and continuity of life.
What Is the “Doing Business As” (DBA) Corporation Definition?
In the Los Angeles area, a DBA, which stands for “Doing Business As,” is defined as a corporation which carries on a business in a name other than its corporate title. It is also known as a “fictitious business name” or an “assumed name” in some contexts. The distinction from an LLC or a corporation is important because it suggests that the business is legally separate from the owner. Further, a DBA can enter into contracts, sue and be sued in its name, and be held liable for obligations.
What Is the Limited Liability Company Corporation Definition?
The Limited Liability Company (LLC) is a corporate structure which allows owners of the business the flexibility of an abstract entity (such as a corporation) while still reaping the benefits of limited liability available to those operating as a limited partnership. Therefore, it combines the corporate form with the liability protection of a partnership. The LLC designation also implies certain regulations such as the submission of reports and the presence of certain documents filed with the Secretary of State.
The key distinctions between an LLC and a corporation include:
•A corporation is required to have a board of directors
•An LLC can have fewer restrictions imposed on it
•An LLC is more likely subject to pass-through taxation
Another key distinction is that the members of an LLC are personally protected by the limited liability afforded to them, while in a corporation, a shareholder is only protected from personal liability to the extent of their investment.
Seeking Professional Guidance
When it comes to corporate complexities like the details of a corporation definition, it is important to seek the help of a business lawyer who is knowledgeable in Los Angeles law. UpCounsel's experienced network of business attorneys are available to provide the expert advice business owners need to make sure their business is incorporated correctly and legally. With a complete legal team at your disposal, it is easy to get the help you need to set yourself up for success.
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