A de jure corporation, sometimes referred to as a regular corporation, is a business entity that has been recognized by a state or country as being legally incorporated. This means that the corporation is recognized in a legal sense, and has rights and privileges that are granted by the governing body that recognized it. This recognition gives the corporation a distinct body and identity, which is separate from that of its individual shareholders or members.
In order to form a de jure corporation, the appropriate paperwork must be filled out and filed with the relevant state or government body. The process for forming a de jure corporation is often done through the assistance of an attorney who understands the laws surrounding the formation of a corporation. Once the paperwork is properly filed, the state or government body will officially recognize the corporation, which grants it the rights and privileges associated with a de jure corporation.
Benefits of Establishing Your Corporation as De Jure
The corporation’s recognition as de jure provides it with protections from liability and other legal stipulations that wouldn’t be available to those not officially recognized by the governing body. For example, if the corporation were party to a lawsuit, and the group suing was not aware of its de jure status, the corporation would be granted protections due to it being legally established. In addition, for corporations that operate across state or national borders, having a de jure status allows the corporation to be properly recognized.
In the modern business world, it is essential that any incorporated business obtain the rights and protection provided by de jure status. By properly forming the corepation, businesses can ensure they are seen as legitimate and legally established entities with the rights and privileges associated with that status.