Fiduciary duty is a legal obligation requiring a fiduciary to act in the best interests of another person, meeting one of the highest standards of care under law. It applies where trust and confidence are placed in someone like a trustee, attorney, or financial advisor. This article explains fiduciary relationships, core duties, and what counts […]
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What is a board of directors?
A board of directors is an elected group—typically 3 to 15 members—that governs a corporation on behalf of shareholders. It hires and oversees top executives, sets strategic direction, and approves major decisions while meeting fiduciary duties. This article explains what boards do, how they’re structured, and why they matter. Understanding the Board of Directors A […]
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What is articles of incorporation?
Articles of incorporation are the state-filed formation documents that legally create a corporation as a separate entity. They typically list the corporate name, registered agent, share structure, and incorporator details. This article explains what they are, what they contain, and how filing works by state. Understanding Articles of Incorporation Articles of incorporation are the legal […]
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What is corporate bylaws?
Corporate bylaws are a corporation’s written internal rules that govern management, meetings, voting, and decision-making. They outline how directors and officers act, how shareholders meet, and how key actions are approved. This article explains what bylaws cover, how they differ from articles of incorporation, and why they’re essential. Corporate bylaws are the internal rules that […]
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What is an S corporation?
An S corporation is a corporation that elects IRS “S” status so profits and losses pass through to shareholders and are taxed once at individual rates. It offers corporate limited liability while avoiding C corporation double taxation if eligibility rules are met. This article explains S corp basics, taxation, requirements, and key pros/cons. Understanding S […]
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What is a sole proprietorship?
A sole proprietorship is a one-owner, unincorporated business where the owner and business are legally the same. You report income on your personal tax return and you’re personally liable for business debts. This article explains how sole proprietorships work, pros and cons, and when to consider another entity. Understanding Sole Proprietorships A sole proprietorship is […]
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What is a corporation?
A corporation is a business structure that exists as a separate legal entity from its owners, typically providing limited liability protection. It can own property, enter contracts, and sue or be sued in its own name, independent of shareholders. This article explains core corporate features, how it operates, and why businesses choose incorporation. A corporation […]
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What is an LLC?
An LLC (limited liability company) is a U.S. business entity that shields owners’ personal assets from most business debts and lawsuits. It combines pass-through taxation options with flexible management and fewer formalities than a corporation. This article explains how LLCs work, key benefits, and when forming one makes sense. A Limited Liability Company (LLC) is […]
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What is a letter of intent?
A letter of intent (LOI) is a written document that outlines the main terms of a proposed deal before the final contract is signed. It shows serious intent to negotiate and often states which provisions are binding or nonbinding. This article explains what an LOI includes, its legal effect, and when to use one. Understanding […]
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What is a memorandum of understanding?
A memorandum of understanding (MOU) is a written agreement between 2 or more parties that outlines key terms and intended next steps. MOUs are usually non-binding but can become enforceable if they include clear commitments and required legal elements. This article explains what an MOU is, what it typically includes, and when you may need […]
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What is a statute of frauds?
The statute of frauds is a contract law rule that requires certain agreements to be in writing and signed to be enforceable. It typically covers contracts like real estate transfers, agreements that can’t be performed within one year, and surety promises. This article explains why the rule exists, what contracts it applies to, and common […]
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What is a voidable contract?
A voidable contract is a valid agreement that one party can legally cancel due to issues like fraud, misrepresentation, undue influence, duress, or lack of capacity. Until it’s voided, it remains enforceable and may also be ratified, making it binding despite the defect. This article explains what makes a contract voidable, common real-world examples, how […]
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