The correct answer is A. No legal formality is required to form a company.
A company is a legal entity that is separate from its owners. It is created by filing articles of incorporation with the state in which it will be doing business. The articles of incorporation must include the company’s name, purpose, and registered agent. Once the articles of incorporation are filed, the company is officially formed.
The shareholders of a company are the owners of the company. They have limited liability, which means that they are not personally liable for the debts of the company. The shareholders elect a board of directors, who are responsible for managing the company. The board of directors appoints officers, who are responsible for day-to-day operations.
A company can own property in its own name. It can also enter into contracts and sue and be sued.
Therefore, the statement “No legal formality is required to form a company” is false.