Corporate governance issues business owner might encounter

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Reference no: EM132164741

Today, just about anyone can form a corporation for any lawful purpose in any state. The requirements differ from state to state. You do not even have to form your corporation in the state where you live or the state where you are doing business. In fact, many individuals form their corporations in the state of Delaware because it has the fewest legal restrictions on corporate formation and operation. Delaware is also the state most often chosen for incorporation via the Internet, often through online companies that offer incorporation services.

Another consideration is that of stock options. When forming a corporation, stock options to corporate officers must not be excessive so as to have the appearance that it is being offered as a form of compensation.

Research and analyze the state and local laws of your home state as it relates to the requirements for incorporation. Critique these laws in your post.

List the formalities and procedures for incorporating a company in your home state.

Compare and contrast the requirements for incorporation in your home state, against the requirements for incorporating a company in Delaware. Discuss the similarities and/or differences.

Discuss what venture capital financing and corporate governance issues a business owner might encounter.

Reference no: EM132164741

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