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What is a Corporation
A corporation is a legal entity that can do anything a person can do. Think of it as an artificial person. It can buy and sell real estate, bring a lawsuit and be sued, or anything else that a natural person can do. Unlike a person, though, a corporation has perpetual life, which means it can go on forever.There are many types of corporations in business: publicly held corporations, domestic corporations, foreign corporations, for-profit corporations, non-profit corporations, limited liability corporations, and private corporations, to name a few. Regardless of the type, perhaps the greatest advantage of a corporation is limited liability.
Suppose that you own one share of a publicly held corporation, World Wrestling Entertainment, which trades on the New York Stock Exchange under the ticker symbol WWE. During a performance, one of the WWE superstars is killed and his family later sues the corporation for wrongful death. If WWE is found negligent and the family receives a large judgment against the corporation, will you as a shareholder be responsible for paying off that judgment? If you answered "no", then you understand the concept of limited liability.
TKE, Incorporated
The Black Book requires each chapter to be an active, registered corporation in the state where they are located. Generally, there will be one corporation for each TKE chapter and the Board of Advisors will be the corporate board of directors. The name of the corporation will be something like "Tau Kappa Epsilon Fraternity, Inc. of the University of Florida".In some cases, there may be a need for separate corporations for the collegiate chapter, the house corporation, the alumni association, the building fund, and the chapter educational foundation. This is uncommon.
How To Become a Corporation
Incorporation is the process of becoming a corporation in your state. Since the process varies from state to state, you will need further clarification for your situation. But here are the general steps that you need to follow:- Every state has a department, usually part of the Secretary of State, that is responsible for corporations. Contact this department to see what the requirements are for starting a tax-exempt corporation. You are probably going to need:
- Corporation Name. The Black Book requires the name Tau Kappa Epsilon or the letters TKE appear in your corporate name.
- Articles of Incorporation. This document states the purpose of the corporation, the original incorporators, the life of the corporation, and how the corporate assets are disposed of when the corporation closes. You can use our sample Articles of Incorporation, but know that they need to be modified from state to state.
- Filing Fee.
- Registered Agent. The registered agent must be a responsible adult in your state who can be served legal notices.
- Send a copy of your state certificate of incorporation to the Offices of the Grand Chapter so that it can be filed in your chapter's permanent file.
- Complete and file Form SS-4 with the Internal Revenue Service in order to receive your Federal Employer Identification Number (FEIN). Send this number to the Offices of the Grand Chapter so we can add your FEIN to our subordinate group list so that you will be exempt from federal taxes. This FEIN is the number you need in order to open a checking account at a local bank.