When is a company get to be called a corporation?

Question

and when is a company get to be called limited, incoporated ...etc

if theres a small company, with 1 owner, and 1 member of staff or perhaps none, what is it call ?

these are so confusing, sorry im not good at businesses

Answer 1

companies can take one of several forms: sole proprietorship, partnership, limited partnership, limited liability partnership, limited liability company, S-corporation and C-corporation

your business may start as a sole proprietorship or partnership. in order to switch to a different classification, you will need to complete some paperwork (attorneys are useful)

corporation: submit an application to the state and include articles of incorporation and bylaws, etc.

Answer 2

When there is a small company with one owner, it's called a sole proprietorship, and the liability (the degree to which the owner will be held responsible for lawsuits) falls directly on the one owner. Once a company incorporates (which involves registering as a corporation, which has a lot of rules), the liability is usually only held against the company (in court, the company will be treated almost like a person or defendant) and not the owners.

A limited liability company is one that is not incorporated but the company is still treated as a separate entity in court like with a corporation. These are relatively new. Hope this helped, and if you have any other questions i'd be glad to clarify.

Answer 3

When you go from being a sole owner, to becoming incorporated. Basically by incorporating your business is a seperate entity from you, thus sheilding yourself from alot of the risks of owning a business. It is well worth it to do so, trust me!

Answer 4

when you file articles of incorporation with your state.