AL-ANON JOB DESCRIPTION

Not long ago, only big businesses were incorporated. These businesses can provide the best compensation packages and benefits that are near to impossible in smaller establishments that are not incorporated.

During the middle half of the 1900’s, other smaller businesses started picking up the idea. One of the reasons that incorporated businesses enjoy is tax exemption and tax holidays that translate into big savings that can be used as additional capital.

During the 70’s the reason to incorporate even small businesses had been so attractive that small businesses started to incorporate. Later however, congress started curtailing the benefits that the big corporations are enjoying that today, even small organizations can start having additional fringe benefits. This resulted in smaller entities having parity with big corporations in terms of tax deductible benefits without being incorporated.

1. While parity has been achieved, there are still many reasons for incorporating.
2. One is image. A good title like President or the CEO of a corporation can command respect among clients. Clients would normally prefer to talk with the top executives of a company than any other person with a non-corporate title to back him up.
3. Another is the protection of a corporation when buying services. To soften the exposure of the company, many are now requiring independent contractors to incorporate themselves before their services are accepted.

An incorporated business has a wide range of powers. It has its own legal personality separate from its stockholders, owners and investors that is mandated and protected by state laws. It can. Enter into contracts and buy and sell properties and goods subject to lawful transactions.

When legal problems arise, anyone from the company can represent the corporation in behalf of the company.

An incorporated company is liable for its own debts. The directors, shareholder and owners are shielded from the company’s debt and can not be sued in behalf of the company. The company will have to bear the burden of is own debts from its own resources except in cases when an individual guarantees the corporate debt or as mandated by the court.