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School corporations are legal entities used by public and private schools in the US to conduct educational business. They vary by state and can be organized under a city, county, town, or municipality. Public schools integrate under state laws, while charter schools must meet state standards. School corporations must have written articles and statutes, and their size varies widely. They offer economies of scale but can suffer from decentralized operations. Employees and school districts are considered separate entities under corporate law.
A school corporation is a legal term used by public and private schools to conduct the educational business of students. In general, a corporation is a separate legal entity with specific codes of operation and separate laws of conduct and responsibilities. School administrators and educators work for the company and are generally considered separate and distinct from it. The exact incorporation rules vary by state, but schools can incorporate under the organization of a city, county, town, or municipality, and also as consolidated, metropolitan, united, unified, or community school corporations.
In the United States (USA), education is organized at the local level. While the national government introduces laws and regulations related to national funding, the final establishment and implementation of national laws depends on local school boards. All public schools generally accept national categorical funds related to education and the purchase of specialized textbooks and equipment. Acceptance of national funding for construction and the employment of education specialists, including teachers and tutors, is determined by local approval. Local school boards that accept national funds, however, are regulated by state education agencies.
As part of the general state education agency, public schools integrate under the laws of the state in which the school operates. Charter school corporations operating in numerous states typically must select a single state for a corporate office and meet the incorporation standards for filing in that state. The curriculum and educational standards, however, must meet the standards of the individual state in which each school is located. For example, a California charter school typically must meet California state curriculum standards. A charter rental company located in California that operates a separate charter school in Indiana is regulated by the Indiana Department of Education and not the state of California.
The general types of American school corporations include the smallest school organizations in a city or village. Larger population centers include additional schools organized around a city, town, or county school society. Cities with multiple school districts typically include school corporations that operate as metropolitans, unites, or communities, and this title denotes cooperation between a large group of schools. An established, united operation involves legal cooperation between a once separate group of schools now working as a unit. Unified is used for a company that represents all schools in the community, including elementary, middle, and high school.
Corporations are typically required by states to have a written set of articles detailing the formation of the corporation and listing management policies. The company must also adopt a statute listing specific duties and rights of the company’s managers and defining the role of groups and individuals within the company. Corporations registered in other states usually need to apply for permission from that state to conduct business there. A separate company filing is not normally required, but registration must be done before the company starts operating. Charter school corporations that do business in more than one state must typically apply for permission to do business outside the state of the original incorporation.
The size of a school society varies widely. Hawaii is represented by a large school corporation, while Los Angeles County has dozens of corporations. A large school corporation has the advantage of economies of scale. Purchasing equipment, supplies, and books at a discount is facilitated by a large number of schools required to use the same curriculum materials and operate in the same manner. When a school enterprise is too large, operations can be decentralized and as a result quality control may suffer.
Establishing a school as a corporation requires public disclosure of funding and expenses. While a school district is viewed as a person in the eyes of the court and as a person can be sued and sue others, employees of the school corporation cannot be sued as part of the corporation. A separate claim must be brought against the person employed by the school if damages are sought. Employees and the school district are considered separate entities under corporate law.
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