A person who makes an investment in a corporation does so by becoming a shareholder, which means they have a stake in the business. The certificate of ownership specifies how many shares each shareholder has. The shareholder’s name, the number of shares they possess, and other pertinent details like the stock class and the date the shares were issued are all listed on the certificate.
The ability to cast a vote on significant issues like board elections and crucial corporate decisions is one of the advantages of holding shares in a firm. Dividends, which are payments made by the corporation to its shareholders, are another possibility for shareholders.
Since the idea of a corporation is built on the ownership of shares, it is impossible to form one without any shareholders. A lone shareholder, or circumstance where all of the shares are owned by one person or entity, is possible for a corporation.
A business may employ a name that differs from its official name; this is known as a fictitious name. The phrase “doing business as” or “DBA name” is also used to describe it. For branding and marketing objectives, fictitious names are employed and registered with the relevant state agency.
On the other hand, a trade name is the name under which a business operates. It might not be the same as the legal name or it might be different, but it is still a part of the organization. Although it is not necessary to register a trade name with the state, it must be used consistently in all commercial transactions.
The name that appears on a corporation’s formation paperwork and is registered with the state is its legal name. It serves both legal and administrative functions as the corporation’s official name. While the legal name is kept the same, the DBA or trade name is utilized for marketing and branding purposes.
A certificate of ownership, then, is an important document that certifies a person’s ownership of shares in a corporation. It serves as proof of ownership and grants the shareholder rights including the ability to vote and get dividends. A fictional name is used for branding purposes and a corporation must have at least one shareholder. A corporation’s formal name as registered with the state is its legal name.