Celebrating American Corporations

Celebrating American Corporations


By Kelly Bagla, Esq.

As the American Revolution came to an end, America was born on July 4th, 1776. The nation was founded by those who yearned for freedom. With that came innovators, individuals who wanted to start businesses, and those looking for work. American corporations started developing in the 1790s, and soon became vital to the new nation’s economy.

Although corporations date back to the 1790s, the first major corporation was the Boston Manufacturing Company, founded in 1813 by Francis Cabot Lowell, which focused on the making of cotton textiles. Lowell took the plans for his business model from England as the first corporations were created in Europe.

The 1870s proved to be a formative time for corporations in American. Oil, electricity, and the growth of railroads aided in the development of American corporations. These developments became opportunities for business ventures and created more business. During this age, the American Industrial Revolution took place. Corporate structure supplies business development and capital that stoked the flames of the American Industrial Revolution.

Since many corporations were founded in America’s early years, the U.S. became one of the chief economic powers of the world. Corporations were incredibly easy to start. The nation was young so there were not many laws for corporations and the steps to start one were simple. Due to the lack of regulations and restrictions, Robber Barons were prominent. Robber Barons were businessmen who were considered unethical in the way they handled their businesses. Robber Barons manipulated the market, creating monopolies. This eventually threatened capitalism. However, the enactment of the antitrust legislation in the late 1800s combined with state regulation and taxation combatted these Robber Barons and their monopolies.

Corporations in American took a turn for the worst when the Great Depression hit in 1929. The Great Depression was the biggest economic crisis in the industrialized world. Impacting the globe, the Great Depression lasted until 1939. Many Americans saw big corporations as the reason for the downturn. Franklin D. Roosevelt put policies in place to revitalize the country with opportunities for businesses and jobs.

After the Great Depression and World War II, corporations in America were able to rise and gain what they had lost. However, states intervened again during this time to enforce labor laws and ensure that monopolies were not dominating the market. As American citizens started to care more about the environment and making sure labor laws were enforced, activism throughout the 1960s, 1970s, and 1980s pushed for labor and environmental standards to be enacted and enforced. Despite the steady rise of corporations in America, they continue to face challenges from large global corporations in the competitive international market.

In 2020, American corporations along with the rest of the world were hit with the coronavirus. This global pandemic forced many corporations to shut down or slow their plans and instead put their energy and resources towards survival both personally and professionally. Large corporations as well as small businesses were negatively impacted by this, but throughout the pandemic, a support small business movement helped many smaller corporations survive.

As we celebrate the birth of our nation this 4th of July, we also celebrate the many businesses in the United States who drive our community, state, and national economics and provide jobs to the American people. Corporations can be a beautiful vehicle to provide jobs, support for the community, help the economy, and to stay on the cutting edge of technology. Corporations are governed by both state and federal laws, which can have negative impacts on those who do not understand corporate compliance.

If you need help navigating the complex corporate laws or determining the best asset protection strategies, we can help. Click here https://baglalaw.com/contact/contact to schedule your consultation. Becoming a business owner, you control your own destiny, choose the people you work with, reap big rewards, challenge yourself, give back to the community, and you get to follow your passion. Knowing what you’re getting into is smart business because the responsibility of protecting your business falls on you.

For more information on how to legally start and protect your business schedule your consultation here https://baglalaw.com/contact.

Disclaimer: This information is made available by Bagla Law Firm, APC for educational purposes only as well as to give you general information and a general understanding of the law, and not to provide specific legal advice. This information should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.