Spartanburg lawyer focused on real estate, Wills, and small business corporations.

Bingman Law Firm
Stephen M. Bingman, Attorney
Providing Spartanburg Attorney Services since 1983

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"Should I Incorporate My Business?"
Copyright Stephen M. Bingman, Attorney

Most business owners incorporate their business to reduce their exposure to law suits and judgments and the possible loss of their personal property such as their home. A corporation is a separate legal entity. When a corporation makes a contract (ex. leases a building) and then defaults on the contract (ex. moves out before the lease expires), it is the corporation which is sued, not the shareholder (corporation owner). When an employee does something wrong and injures someone, it is the corporation and sometimes the employee who may be sued, not the shareholder (corporation owner). For example, if a corporation hires an employee to run an errand and the employee has an auto accident, it is the corporation, driver (employee), and vehicle owner (corporation) which may be sued, not the shareholder (corporation owner). Please notice that a corporation shareholder (corporation owner) does not have complete immunity. If the shareholder (corporation owner) guarantees a contract, the shareholder (corporation owner) may be sued. If the shareholder (corporation owner) is the person who caused the injury such as the driver who is involved in the accident or the owner of the vehicle involved in the accident, the shareholder (corporation owner) may be sued.

Some businesses are incorporated for tax purposes. For information on taxes, consult your accountant.

South Carolina has a "closely held corporation" statute which is ideal for small businesses. The "red tape" and "paperwork" is greatly reduced for "closely held corporations". Also, a "closely held corporation" can elect to be a "Sub-S Corporation" for tax purposes and avoid the "double taxation" of large corporations.

If you have further questions, please call the Bingman Law Firm.

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Legal Disclaimer

All information on this web site is general information and not legal advice. Legal advice is based on the specific facts and circumstances of a matter and, of course, The Bingman Law Firm does not know your specific facts or circumstances. Further, nothing contained in this web site is to be interpreted as creating an attorney - client relationship. No such relationship can or will exist until Attorney Stephen M. Bingman has personally agreed to such a relationship. Should you have any questions of any nature whatsoever concerning information contained in this web site, contact Attorney Stephen M. Bingman or another licensed attorney.

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Copyright 2007 Stephen M. Bingman. All rights reserved.
Stephen M. Bingman is a Spartanburg lawyer focused on real estate, Wills, and small business corporations.