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Also the Answer for a Small Business

"Corporation" sounds like a corporate form of something that is reserved for large companies. It is a fact that in Germany those companies designed as a German Aktiengesellschaft (AG) do not include small businesses, or not very many small and medium enterprises. The U.S. Corporation is also a Corporation, however, different rules apply here than in Germany so that it is not out of the question that the legal form of Corporation is also widely used for small and medium-sized businesses. 

There are several reasons for this:

  • Although a Corporation can have a number of official departments, it can ultimately be run by just one person. The company's shares are then held exclusively under one name. Anyone who wants to start a Corporation as an individual must do so in a U.S. state in which one person is sufficient as a member of the so-called Board of Directors of the company. What the Board of Directors is will be explained here.
  • There is no share capital needed for the establishment of a U.S. Corporation founded in Florida.
  • There are several variants of the U.S. Corporation so the founder can choose a variety of conditions suitable for their needs.

All this lowers the entry requirements for the establishment of a U.S. Corporation and makes it practical for businesses of any size. 

In any case, the Corporation is one of the companies in which the liability is limited to the company's assets. The personal assets of the founder are then broadly protected. 


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