Business Formation & Securities Law Essay Example | Topics and Well Written Essays - 500 words

Business Formation & Securities Law - Essay Example The same act also requires all businesses to file registration statements with the Securities and Exchange Commission. This registration should include full material facts for investors (HG Legal Directories, 2011). This means that WiDgets &GaDgets has to disclose any important information to realtors who are an important part of their business. The realtors need to know all relevant information about ownership and finances before they make any decision to work with the company. The Small Company Formation Act of 2011 Different states in the U.S. have differing legal requirements for business formation. However, they are all similar in that proper registration of the business must be done before a company is given the go ahead and commence operations in a certain area. WiDgets & GaDgets have to go through the proper registration channels before they are allowed by law to form a business in any one state. Then they also required to comply with the real estate requirements for organizations planning to form businesses in particular areas (HG Legal Directories, 2011). This means that they have to consider the insurance and tenancy laws of the state they want to set up business. It is also important for the organizations to look carefully at the tax requirements for businesses that are situated in certain areas. In some states, businesses located in prime locations are likely to be taxed more than those in other areas (Cox, Hillman and Langevoort, 2009). While looking for the perfect location for business, WiDgets & GaDgets may have to think about the kind of place which will enable the company to make maximum returns while maintaining manageable taxation and expenditure. The securities Exchange Act of 1934 is the legislation that governs the secondary trading of business securities. As an organization that multiple chain stores in different states, WiDgets & GaDgets must