Sunday, April 10, 2011

One important part of being an incorporated

One important part of being an incorporated company is that you have to sell shares (you can be the sole share holder as well though). There are always positives and negatives to situations so make sure you become familiar with these. When you sell shares you can in fact lose your interest  MBT Kimondo, in the company. Meaning if you don't hold over 51% of the shares you can actually be out voted when big decisions are being made. If you want to maintain control over the company make sure you structure the share holding in the correct fashion to protect against the situation of being voted against on major decisions.

One of the benefits of the company structure is that stock holders and yourself have less liability. This offers greater peace of mind for potential investors. Generally the most you stand to loose in a limited MBT Moja,corporation is your initial investment due to the liability that has been structured into the company.

This means if you start out by investing into the company with 1.If your company grows from say $500,000 to $2 million dollars and the company goes into receivership and files for bankruptcy you will loose at that is invested. If you in fact cash out before the bankruptcy then you would get close to $6 million (minus any taxes, of course). Still though you only invested the 1.5 million so that is all you are considered to have lost.

Your personal protection in a Company in Australia will be determined by how much you invested in the company. In most cases this is all you can lose by investing in the company, and you will not have to worry about any of your MBT Ema, assets if the company goes south. You should always seek council from experts to make sure you are setting up your structure the right way.

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