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Corporations, LLCs, and Other Entities
The second broad type of business entity classification are the “incorporated” entities, such as corporations and limited liability companies (or “LLCs”). Indiana law states that:
A corporation is an artificial and independent legal entity with an existence separate and distinct from its shareholders and officers. It is this difference between an independent legal entity deriving its existence from statutory authority versus an aggregate of individuals which distinguishes a corporation from an unincorporated association.[1]
A corporation has the power to “sell, convey, mortgage, pledge, lease, exchange, and otherwise dispose of all or any part of its property,” including real property.[2] The same is true of LLCs.[3]
An LLC owns the property in sole ownership unless it shares interest with another individual or corporation.
[1] Benevolent & Protective Order of Elks Local 291 v. Mooney, 666 N.E.2d 970, 972 (Ind. Ct. App. 1996)
[2] Ind. Code § 23-1-22-2(4) – (5)
[3] Ind. Code § 23-18-2-2(4) – (5).
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