Professionals, having invested years of service under an employer, are retiring and offering their services on contract. Such individuals are strongly advised to register a limited liability company mainly to protect their personal, existing, hard earned (house, pension and other investments) assets from lawsuits and subsequently, to present a professional image to potential clients and other service providers.Professionals, retiring from day to day responsibility in a large organization with financial benefits and good health, are contracted to undertake similar task requiring less of their time. Such a contract, between the large organization and an individual, would not normally protect or insure the individual as if directly employed or as a representative of the large organization, opening the individual to personal liabilities that places personal assets at risk. A contract between the large organization and a company would limit the risk placed on personal assets and clearly address who has responsibility and liability under foreseen circumstances. This newly registered company will have to earn revenue in excess of and be able to pay its own operating expenses, salaries and related expenses, legal and accounting cost and tax obligation, similar to the large organization.
Legally the company is an entity with the same status as an individual, having the rights to own and dispose of property. Many individuals, who do not have the rights to own property in a foreign territory under immigration laws, can form a company under the laws of that territory for this very purpose. The company can open and operate its own bank and investment accounts and is limited and liable up to the value of its shareholders’ equity, that is the difference in value between what it owns and what it owes. The company is entitled to benefits under taxation ordinances, which can differ across jurisdictions, allowing officers of the company to enjoy the use of its fixed (buildings, cars, etc.) assets. Many assets acquired under the company’s name are entitled to tax credits, once the assets are shown to have been used for the company’s activities.
Imaging the company can be the most important strategy decision in attracting and winning new high value contracts. Starting with the company logo, a memorable image that visually communicates your mission; which is incorporated on stationery (call cards, letterheads, etc.), electronic communications (emails and website) and moveable assets (uniforms, vehicles, etc.) to leave a positive impression on all potential clients. A corporate seal or stamp, with the authorized director and or secretary signatures, is the legally registered company. Signatures alone are legally those particular individuals and their personal assets, the corporate seal alone means nothing, put them both together and there is a legally enforceable commitment, obligation or contract limited to the company’s net assets.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
