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Many businesses are operated through a separate entity corresponding to an organization or a partnership . Most legal jurisdictions allow people to organize such an entity by filing certain charter paperwork with the relevant Secretary of State or equivalent and complying with sure different ongoing obligations. The relationships and legal rights of shareholders, restricted partners, or members are ruled partly by the charter documents and partly by the legislation of the jurisdiction the place small business the entity is organized. Generally speaking, shareholders in a company, limited companions in a restricted partnership, and members in a restricted liability company are shielded from private legal responsibility … Read more