If the company`s goal is to make «venture capital» investments, forming the right kind of business is crucial. For example, companies are not allowed to hold stakes in S. S-companies also cannot have more than a hundred foreign shareholders or owners. An inappropriate corporate structure can limit your options for membership and external investment. 7 p.m. Jur. 2nd Corps. § 1907 (emphasis added). «The abuse of language of a society is generally not considered material by the courts if the identity of the company is sufficiently clear or can be established by sufficient evidence.» 18 C.J.S. Corps. § 138 (emphasis added). See also Fletcher-CYC § 4446 («Naming a company upon return of the Service does not result in the disability or loss of the Service. Courts generally allow service or return changes in order to correct the company name.
In the case of companies and other legal persons. The action shall be binding if the name is substantially identical to the correct name and if the procedure is notified to a person whose knowledge of the action shall be equivalent to notification to the undertaking … Correct name of the legal entity One of the most common mistakes made by the parties is not using the correct name of the legal entity or not entering into a contract with the right party. Typically, the error is minor, such as inserting (or omitting) a comma before «LLC» or «Inc.» Sometimes, however, the error is more serious. The above cases show that abbreviations and minor changes in entity names are not a cause for concern, but the written name does not need to be completely different to be considered fictitious. Given the risk of unintentional individual liability, it is important to always ensure that your business entity is properly named in agreements. The Secretary of State may, in certain circumstances, be appointed or deemed to be appointed as a legal agent for the service of a person. These circumstances are expressly defined by various provisions of Texas law. For example, Article 5.251 of the BOC sets out the circumstances in which the Secretary of State is the representative of an entity for the purpose of serving a dispute, notice or claim: However, if the difference is greater, Georgian courts are inclined to hold the individual signatory liable. For example, in Zuberi v. Gimbert, 496 S.E.2d 741 (Ga. Ct.
App. 1998), the Court of Appeal concluded that «ATM Manufacturing, Inc.» was too different from «ATM America Corp.» or «ATM Enterprises, Inc. » to be considered a simple abuse of language. Similarly, in Jones v. Burlington Indus., 397 S.E.2d 174 (Ga. Ct. App. 1990), the court found that «RBJ Textiles, Inc.» and «RBJ Textiles» were prima facie «completely separate legal entities» from the registered entity «RONJON, Inc.» Many business owners may personally accept payment for their services and operate as a «sole proprietorship,» but choose not to do so because they fear protecting themselves from personal liability. An inappropriate company can expose owners to personal liability. For example, a single-member LLC likely won`t isolate the owner from Florida`s liability. It is important to seek advice to form an entity that protects the owner.
At the Courtland Hotel, the full name of the company was «Convention Organization and Leadership Team, Inc.», but was written on the contract as «C.O.L.T., Inc.» The Georgia Court of Appeals said: «We are not convinced of the. Argument that these two names differed so much that the acronym should be considered a fictitious name and not an abbreviation. Id., p. 752. Similarly, in Hawkins 303 S.E.2d 164, the Georgia Court of Appeals found that «Hawkins Plumbing Co., Inc.» was simply a misnomer of «Hawkins Heating & Plumbing Co., Inc.»; Thus, the company was the contracting party and not the signatory. While there are exceptions, some legal documents must be signed to be effective. This is rarely a problem if the value of the order is large.