From: qut@netcom.com (Dave Harman)
Date: Mon, 20 May 1996 23:02:22 +0800
To: cypherpunks@toad.com
Subject: Re: Incorporating
In-Reply-To: <199605200437.GAA20138@spoof.bart.nl>
Message-ID: <199605201016.DAA26766@netcom23.netcom.com>
MIME-Version: 1.0
Content-Type: text/plain


! How do corporations work, in terms of liability?  If the cost of 
! incorporating isn't forbidding, I would think a remailer operator might 

An excellent idea for reducing civil liabilty.
It's easy and cheap to incorporate a delaware for-profit corporation.

Following certain practices,
vastly increases your legal status.
Such as the corporate boilerplate of:
Stock certificates;
Proper titles and roles that are duly recorded;
Proper minutes, meetings, accounting;
Good Articles of Incorporation.

In other words,
Sameer the $USER is very different from President/Chairman Sameer Parekh of C2, Inc.

A non-profit corporation is considably different,
and for certain reasons,
would not be as good as for-profit for potentially shielding civil liability.
(Unfortunately, case law suggests that.)

! consider incorporating a company, and making the remailer a function of 
! that company.  That way, any losses are restricted to the total value of 
! the corporation; that is, nothing.  Any flaws?  There must be something 
! wrong with it somewhere.

Less freedom than the sole-proprietor.
Following the corporate protocols.

! Thanks.

Thank you for your contribution,
Qut