Accounting Laws
Jeanette M Melchor Maldonado
ACC561/PR-Accounting
University of Phoenix
November 14, 2013
Prof. Brenda Figueroa-SotomayorAccounting LawsThe retail business that soon will be open, it’s going to be organized as a corporation. According to Williams, Haka, and Bettner (2005) “A corporation is an entity that legal and is separate and distinct from its owners. Corporations have most of the responsibilities that an individual possesses. The most important aspect of the corporation is limited liability; that shareholders have the right to participate in their profits through stocks, but is not held personally liable for the business’s debts”.
Business in Puerto Rico
The Law of Corporations of Puerto Rico, is the law num.144 created on august 10, 1995 and stipulates for the creation or adoption of for profit, non-profit, foreign, domestic, close and professional corporations. Corporations may be organized by one or more persons or juridical entities and are available for any lawful business with limited exceptions. The domestic corporations are entities created and organized under the laws of the Commonwealth of Puerto Rico. The close corporations are domestic with less than 75 shareholders, which are afforded direct participation in the business management. Foreign corporations are created under a state of the United States or other countries and must request a permission certificate to do business in Puerto Rico. Professional corporations are organized with the solely purpose of rendering service, where they are defined as any type of services that requires the person to acquire a license. Also the law establishes the limited liability companies and limited liability partnership and civil partnerships. LLC’s has fewer requirements that its corporates, both foreign and domestic LLC’s must be registered. LLP’s are for individuals that engage in professional services and want to avoid the formalities of the corporate entity, annual renewal…