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State Trading Corporation Overview

State Trading Corporation

Business laws and regulations regarding corporations and the economic sector are very extensive. Each state is responsible for establishing and enforcing business laws in that state. As a result, it is important that there is an organization or state government entity dedicated to enforcing business laws in each state.

A state trading corporation is a corporation or organization that is responsible for enforcing these laws. Each state within the United State has established a state trading corporation or a similar government entity. The duties, responsibilities, and activities of these departments vary from one state to another.

In general, these organizations help to ensure that consumers are protected from fraud or other illicit behavior practiced by corporations. These organizations are also known by alternative names, including State Corporation Commissions and Department of Corporations.

In most instances, a business or corporation will be required to register with a state trading corporation. The corporation that it registers with will be the organization that is maintained within the state in which it was established.

Each state has different regulations regarding what constitutes a business and what types of financial services must be registered with the state trading corporation. Therefore, if an individual is obtaining compensation for financial services or if he/she decides to open a business, he/she should review all information provided by the state trading corporation.

In the event that complaints are filed against a business, it is this Department that will investigate the claims and enforce any laws pertaining to the case. State trading corporations play a vital role in regulating the economic and business sectors within states.

NEXT: How do State Administrative Agencies Work?

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