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From a Sole Proprietorship to a Corporation - Essay Example
Finance & Accounting
Pages 5 (1255 words)
Title: From a sole proprietorship to a corporation Starting a corporation is more complicated than starting a proprietorship or partnership (Ross, Westerfield & Jaffe, 14). As such, the paper outlines the major factors that are considered when one is starting a company or a corporation as it may also be called…
A corporation is a distinct legal entity with a name and it also enjoys many legal powers like a natural person (Cillers, 24). Thus, it can be observed that when the company is formed, it automatically acquires the capacity and authority to have its own rights and duties (Gibson, 198). One major distinction between a corporation and a proprietorship is that corporations can acquire and exchange property and they can enter into contracts. In this case, the new company to be formed will be called Global Courier Services Inc. This company will be incorporated from a small business that has been specifically concerned with providing delivery services of small parcels to clients located in different parts of the local city. However, as a result of booming business, it has been underscored to expand the business into a large company called Global Courier Services Inc. This new company will be comprised of different shareholders and it will compete with other large companies that are involved in this particular business. Global Courier Services Inc will specialize in transporting parcels, light goods as well as mail among different clients. The corporation will cover the whole state and it will be headquartered in New York. However, the company will have offices in major towns and cities around the state. ...