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Once you form a new business entity, you need to come up with a way to get money into it. This concept is known as capitalization or funding of the business entity.

At first glance, funding an entity seems fairly simple. Don’t the officers of the corporation simply open a bank account and deposit some money? Unfortunately, it is not that simple. The money has to come from somewhere, typically the shareholders.

Funding a new corporate entity is obviously a critical step, but how is it done. There are three primary methods, although one should check with applicable laws in your state to delineate which are available. Regardless, let’s take a closer look.

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Wondering if a trademark is important to you as a business owner? Let’s start with the basics. A trademark is a word, phrase, symbol, or logo that distinguishes and identifies the source of goods of one company or person from another. For example, the name Kraft is trademarked, as is Nike’s “swoosh” logo.

The list of what constitutes a trademark is long. A trademark can also be granted to unique packaging such as the shape of Coca-cola’s bottle, building designs, color, sound, and even fragrance. Service marks receive the same legal protection, but are used to distinguish services instead of products.

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Sarbanes Oxley Law, more commonly known as SOX, is a popular legal tool to ensure that the right measures of corporate governance are infused in the business operations to avoid any corporate scams or misreporting. In fact, the area governed by this act is much larger and diverse, yet the eventual aim is to curtail any illegal activity in the business sphere by tightening the grip of law on the overall operations, especially the financial proceedings.

The Requirements:

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The word “foreign” carries connotations of something in a country other than one’s own. In the world of corporate law, of course, it has an entirely different meaning.

For the most part, corporate law falls into the bowels of state law. Put another way, each state writes its own rules and regulations regarding business entities. There is no federal law on the subject and none seems imminent regardless of how strange some of the state laws are.

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Companies listed in the NYSE had to get an internal audit department ready before 31 October making sure the new audit heads could evaluate the scope of their departments work, as well as how to comply with the new Sarbanes Oxley laws. They had to hire new directors and get an audit plan ready due to the provisions made in the Sarbanes Oxley law passed in 2002. The companies had to hire personnel as well as assign the new department a budget, determine how they will document compliances and how much work to assign the audit department. Sarbanes Oxley Act of 2002 has created a revolutionary change in the corporate governance as well as internal control for companies listed in the NYSE. This Act was passed to check fraud and bring reliability to financial reporting.

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Intellectual Property (IP), in the literal sense, refers to the property of one’s intellect or mind. In terms of business, it is defined as one’s proprietary knowledge.

Need For Protection of IP:

Depending on the nature of business you are into, your intellectual property could be anything such as a design, formula, process, system, and invention. Such a property is the most valuable asset that a company owns. IP is most valued because it can it provides various companies much needed leverage to stay remain ahead of competition successfully. This feature makes IP essential for a company.

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