What is a Real State business? A Real State business is a type of corporation that exists for the purposes of performing the business of a normal corporation. However, unlike a normal corporation, each particular Real State business is organized under a specific set of statutes and rules established by a special law. A corporation cannot operate more than one branch at a time and must have a manager or governing board to exercise control over that corporation. A Real State business also may be authorized by special laws from time to conduct business in specific areas or to name one or more entities for doing so.
What are Real Estate properties? Real estate is real property consisting of the buildings and other property on it, and its underlying natural resources like water, rocks or plants; an asset that does not change hands constantly. Examples of Real Estate properties are retail shops, offices buildings, warehouses, motels, industrial production centers, barns, and private housing. The term “real estate” usually refers to tangible land rather than the intangible assets of a building or land. For instance, real estate includes the intangible assets like the money paid for a plant, the machinery used to build the plant, and any property purchased with the money (e.g., the purchase of a tract of land).
How are Corporations formed? A corporation may be created in either of two ways – by an individual on his own behalf, or by a corporate entity composed of more than one individual or corporation du an bien hoa universe complex. One can incorporate a business directly, which means creating the company by filing Articles of Organization with the state in which the business is to be operated. On the other hand, a corporation can incorporate in one or more states by becoming a registered agent with those states, paying the filing fees, and changing its registered office to a different state if required.
What are the advantages of state business corporations? The main advantage of state business corporations is that they can limit liability for personal and corporate debts of the business. This way, debts of the business are limited to those incurred by the individuals directly involved in starting the business, but not to those incurred by the business through sales of goods and services contracted by the business. Another advantage is that corporate creditors cannot bring claims against the business unless the company has itself become insolvent.
Are there disadvantages? One disadvantage of a corporation form is that it does not provide much protection from fraud and embezzlement. In addition, some state laws prevent corporate creditors from collecting the debts of a company even after the business becomes insolvent. This law, known as the anti-embezzlement act, was introduced so that creditors would not be able to use corporate debt as leverage against the owners and officers of the business.
What are the differences between a corporation and a partnership? A corporation is formed for specific purposes. A business partnership is formed for various purposes. Real state business corporations must have a written agreement with the state where they establish business. A business that does not have such an agreement risk becoming ineligible for state funding. The company can lose its eligibility if it uses corporate debt as a kind of credit or assumes debts of the business without first getting approval from the state.