BUSINESS ORGANISATIONS AND CORPORATE LAW: A Comparative, Comprehensive and Functional Approach

Business Organization refers to how a business is structured. The business organization is defined in the bylaws when the business is formed with the name and contact information of those who own and run the company with their roles defined. The bylaws state the purpose of the organization and what it does. A sole proprietorship does not have bylaws because one person owns and controls the business. Corporate law deals the formation and operations of corporations and is related to commercial and contract law. A corporation is legal entity created through the laws of its sate of incorporation, treating a corporation as a legal person that has standing to sue and be sued, distinct from its stockholders. Corporations are table entities that are taxed at a lower rate from individuals. Until formally dissolved, a corporation has perpetual life; deaths of officials or stockholders do no alter the corporation s structure. State laws regulate the creation, organization and dissolution of Business corporations. Many states follow the Model Business Corporation Act. States also have registration laws requiring corporations that incorporate in other request permission to do in-state business.