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What is Incorporated?

Discussion in 'Business Operations' started by 021462, Nov 16, 2002.

  1. 021462

    021462 LawnSite Member
    Posts: 97

    Sorry, I really don't know but I have a legitimate business name and account but what is Incorporated?
  2. KenH

    KenH LawnSite Bronze Member
    from CT
    Posts: 1,622

    This gets a little complicated, but it is a form of business organization. A "corporation" (which is what Incorporated means) is its own entity and is not owned by a single person. The business itself has a value, usually represented by stocks. There is also an executive order, ie president, vice, etc.
  3. Green Pastures

    Green Pastures LawnSite Silver Member
    Posts: 2,457

    The REALLY nice thing about being incorporated is that IF you do have a serious accident including totally destroying a house or God forbid loss of life, chances are in this day and age you will be sued. If you're not incorporated they sue YOU, and can get at your house, car, savings, everything YOU own. However if you are incorporated they can still sue but can only sue the business and NOT your personal accetts.

    Incorporation is a very smart thing to do. It's not at all costly and can benifit you if you look into it and do it right.
  4. jason r.

    jason r. LawnSite Senior Member
    Posts: 338

    If you're solo (no employees just you running and working the company) can you incorporate? If so, who would be named ex., pres., vice pres., etc.? I've been wondering this since I started my biz.
  5. Green Pastures

    Green Pastures LawnSite Silver Member
    Posts: 2,457

    Where I'm at you can name yourself Pres., Vice. Pres. etc., although I do have a family member as Vice. Pres.

    The other nice thing about it is you're REQUIRED to have "board" meetings. We have them at a really nice resturant and it's all tax deductable. :D
  6. GroundKprs

    GroundKprs LawnSite Bronze Member
    Posts: 1,969

    If you are working solo, and are incorporated, your personal assets are not insulated. If you are driving the mower that slings the rock that blinds the little kid, of course the corporation will be sued as the business owner. But, BIG BUT, you can also be sued as the individual driving the mower.

    Corporation only protects you from stupidity of employees other than yourself!
  7. rross

    rross LawnSite Member
    Posts: 52

    I am after my masters in business administration and if a employee on the job of a corporate administration causes damage to someone or something, the corporation is at fault. When you work for a corporation, so long as you are legitimately on the clock, YOU are the sole property of the corporation, all damages are issued through the corporation. However, as with the post above, there are some catches to this, if you don't keep a time sheet for your foreman/managers to sign in and out when en employee is on the job, and they are cutting some grass, a piece of whatever flies out and hit miss johnson in the knee cap, the laywer may try and say that he wasn't on the job cause the time sheet is not presentible.

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