jurisdiction

Examples of jurisdiction in the following topics:

• Formation of the Corporation

  • The law of the jurisdiction in which a corporation operates will regulate most of its internal activities, as well as its finances.
  • These terms vary by jurisdiction and language.
  • In some jurisdictions they are mandatory, and in others they are not.
  • This requirement generally applies in Europe, but not in Anglo-American jurisdictions, except for publicly traded corporations where financial disclosure is required for investor protection.
  • All corporations must have a distinctive element, and in most filing jurisdictions, a legal ending to their names.

• Individual Taxes

  • In the United States, there are an assortment of federal, state, local, and special purpose taxes that are imposed by such jurisdictions on individuals in order to finance government operations.
  • Tax rates vary widely by jurisdiction from less than 1% to over 10%.
  • Nearly all jurisdictions provide numerous categories of goods and services that are exempt from sales tax or taxed at a reduced rate.
  • Most jurisdictions below the state level impose a tax on interests in real property (land, buildings, and permanent improvements).

• Stocks

  • The par value is the de minimis (minimum) amount of money that a business may issue and sell shares for in many jurisdictions and it is the value represented as capital in the accounting of the business.
  • In other jurisdictions, however, shares may not have an associated par value at all.
  • Most jurisdictions have established laws and regulations governing such transfers, particularly if the issuer is a publicly traded entity.

• Characteristics of a Corporation

  • Most jurisdictions now allow the creation of new corporations through registration.
  • In many jurisdictions, corporations whose shareholders benefit from limited liability are required to publish annual financial statements and other data, so that creditors who do business with the corporation are able to assess the creditworthiness of the corporation and cannot enforce claims against shareholders.
  • This requirement generally applies in Europe, but not in Anglo-American jurisdictions, except for publicly traded corporations where financial disclosure is required for investor protection.

• Pros and Cons of a Partnership

  • Limited partnerships allow limited liability for some partners who have no management authority, and in some cases (depending on the jurisdiction) limited liability partnerships provide for limited liability for all partners.

• Bankruptcy and Bond Value

  • In Chapter 11, in most instances, the debtor remains in control of its business operations as a debtor in possession, and is subject to the oversight and jurisdiction of the court.

• Bankruptcy Considerations

  • In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor.

• Corporate Taxes

  • The types and rates of taxes vary depending on the jurisdiction in which the corporation is organized or acts.
  • This rate varies by jurisdiction and is generally the same for different types of income.

• Overview of Organizational Structure

  • The owner files articles of incorporation with the secretary of state's office for the particular jurisdiction.
  • The business entity's type, its geographic span of operations, risk profile, and other factors are issues to consider when choosing what entity type to use, in what jurisdiction to incorporate, how the articles should be drafted, and if a stock form should be used.

• Pros and Cons of a Corporation

  • In many jurisdictions corporations, whose shareholders benefit from limited liability, are required to publish annual financial statements and other data, so that creditors who do business with the corporation are able to assess the creditworthiness of the corporation and cannot enforce claims against shareholders.