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Many companies are operated by means of a separate entity comparable to a corporation or a partnership (both shaped with or with out restricted legal responsibility). Most authorized jurisdictions permit people to arrange such an entity by submitting sure constitution documents with the related Secretary of State or equal and complying with sure other ongoing obligations. The relationships and authorized rights of shareholders , restricted partners, or members are ruled partly by the charter paperwork and partly by the legislation of the jurisdiction the place the entity is organized. Usually talking, shareholders in a company, restricted companions in a limited partnership, and members in a restricted legal responsibility company are shielded from private legal responsibility for the money owed and obligations of the entity, which is legally treated as a separate “person”. Which means unless there’s misconduct, the owner’s personal possessions are strongly protected in law if the enterprise doesn’t succeed.
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