What Does Legal Status Mean?
Legal status is commonly understood as the condition or state of a person, group, or entity that is created and regulated by a set of legal rules. This term encompasses a wide range of identifiers that determine individual and collective rights, privileges, duties, and legal capacity within a society.
Within the context of international law, legal status is frequently used to distinguish between entities such as states, individuals, or non-governmental organizations. For example, the legal status of a foreign national may dictate their ability to reside, work, or acquire property in a different country. Similarly, for corporations and other entities, legal status can determine their capacity to enter into contracts, take legal action , or be taken action against under the law.
The legal status of an individual or entity also identifies them as being subject to specific law or laws. For instance, the legal status of a married couple might involve being subject to family law requiring the support and maintenance of each other, whereas the legal status of a soldier might imply subject to military law and the code of military justice.
Legal status also plays a key role when it comes to determining who has a legal interest in a dispute, who can bring a lawsuit, and what type of rights and remedies are available. Understanding the legal status of various parties to a case is vital to practitioners who seek to fully evaluate legal rights and obligations.
Legal Status of Persons
The legal status of individuals may fall into the following major categories: These 4 major categories include many subcategories. Herein are the subcategories identified with each category of individuals. Citizenship At the largest and broadest level, the first major category within the legal status of individuals is citizenship. The citizens of any nation shall be generally considered to be the persons who owe allegiance to that nation and are entitled to an exemption from an obligation of servitude on behalf of other nations (unless expressly waived by treaty); who are considered the equal of the indigenous peoples; and who shall be generally permitted, so long as obedient to its laws, to choose where they shall (and shall not) reside. It will be seen that this broad legal definition may be reduced into three (3) subcategories: As to "Allegiance," it will be seen that one major criterion for "Allegiance" involves the obligation of servitude on behalf of another nation. This begs the questions: in this context, what, if anything, is meant by allegiance? What, if anything, is intended by servitude? As to the first question, "allegiance" means loyalty to the country of one’s citizenship (including civilian or military obligations). As to the second question, "servitude" (including military service) arises out of the dual concern with respect to neutrality, that is, "that citizens shall not be forced to serve in the armed forces of another nation and, conversely, that foreigners shall not be able to take advantage of refusing military service." 39 Op. Att’y. Gen. 487 (1888). Thus, citizens have an absolute right to refuse military service on conscientious grounds which is religious or philosophical in nature. See Dunn v. Carey, 72 Ill. App. 3d 568, 390 N.E.2d 145 (1986). On the other hand, conscientious objectors must be willing to put themselves at the disposal of their government for non-combatant duties or in the Armed Services as a health care provider (or in performing "essential civilian service"). For a U.S. citizen, he/she may only exercise that right of conscientious objection in a war(s) in respect to which the U.S. has asserted in treaty reservations that it will not conscript its citizens. As a practical matter, beyond the age of draft registration, no U.S. citizen is protected from the obligation to serve in the Armed Services of the U.S. by the Constitution of the United States, treaties, or the universal principles of the law of nations. See footnote 5km. Citizenship requirements preclude any citizen being compelled to perform any political community function (civil and political rights) (i.e., obligate, compel, or mandate complete obedience). The sanctity of voluntary pledges of allegiance and belief are protected under international law (the law of nations) by national adherence to the guarantees of individual control over the use of his/her body and limbs. This has given rise to the Modern international convention urging national adherence to political autonomy with respect to the voluntary choice of such "allegiance" pledges of allegiance and belief as well as the associated normal human behavior. The next major category of the legal status of individuals is that of resident aliens. Resident alien means an alien in the U.S. who is not a non-resident alien. Resident aliens are generally liable to income tax on their worldwide income, and the citizens of the United States and resident aliens are one of the few classes of individuals who, residence in a foreign country, are not subject to tax by that country. At the same time, resident aliens are protected under the Constitution of the United States, as well as treaties, diplomatic conventions, and the customary international law of nations. See 1, supra, pp. 111-112; 39 Op. Att’y. Gen. 487 (1888). The next major category of the legal status of individuals is that of visitor aliens. Visitor aliens are nonimmigrant aliens who have expressed no intent to reside in the U.S. See 26 C.F.R. § 2-2. See also 8 U.S.C. §§ 1101(a)(15), 1184(a) (1976). The exemption for visitor aliens is from taxes on income and on the estate of the alien individual, provided that the visitor alien’s residence is outside the U.S. 26 U.S.C. §§ 871(h)(1). The last major category of the legal status of individuals is that of refugees. By way of convention among nations, refugees are individuals who are fleeing (or attempting to flee) war, persecution, natural disaster, fatal disease, or other catastrophic conditions not caused by the individual. Refugees are sometimes called asylum seekers (or asylees). See 1, supra, pp 112-113. Refugees may lawfully reside and naturalize (obtain a residence permit) in the U.S. and other countries adhering to the modern international treaties dealing with refugees.
Legal Status of Companies
Legal status of a corporation refers to the level of legal recognition that the corporation has in a specific place, and what tax obligations and liability it must take on as a result.
Incorporation is beneficial because it separates the corporate entity from its owners. Incorporation provides limited liability over the assets of the corporation to its owners. Limited liability means that in most cases, owners of a corporation cannot be held personally liable for any acts committed by the corporation. This does not mean the owners and responsible officers are not responsible for their own negligent or tortious actions, however. If a corporate officer commits a tort, they can be held personally liable.
Certain types of corporations are formed for nonprofit purposes and as such have different requirements in terms of formation, bylaws, capital stock and board members. Not all nonprofit corporations are actually nonprofits in terms of not making any profit or earning revenue. To be tax exempt, a nonprofit corporation must apply for tax-exempt status with the IRS and meet certain requirements. If granted tax exempt status, a nonprofit corporation does not have to pay income taxes on money that can be used to further its mission.
It should be noted that there are several types of corporations, including non-stock corporations, general corporations, close corporations, foreign corporations, domestic corporations, professional corporations, public-benefit corporations and for-profit corporations.
Legal Status in Immigration Matters
Legal status can be just as complicated as citizenship status. Immigration laws vary widely across the world. That means that if you go on a trip to France and decide to stay, your right to live in France will be dependent on a complex interplay of France’s immigration and naturalization laws and the international treaties France is party to.
Nonetheless, there are a few general terms that cover the landscape of legal status as it pertains to immigration. A refugee is generally someone who has fled their home country due to some form of persecution (real or expected) in their home country. An asylum seeker may or may not have made it out of their home country but is attempting (or hoping) to gain refugee or "asylum" status. An undocumented immigrant is usually someone who has broken the immigration laws of the country in which they reside. Residency refers to a right to live in a particular country.
As with any legal concepts , the above terms have very specific definitions that must be applied. Using the term "illegal" in immigration discussions is typically frowned upon because there are few if any situations that would lead to "illegal" status, as that is covered by criminal law. This is particularly true in the United States, where over 45 million people are living in the U.S. without the benefit of being a U.S. citizen or permanent resident.
One additional challenge is that refugee status may not guarantee the refugee status in all other countries that the refugee passes through. To put it another way, if you are a refugee — say, from South Africa — the fact that another country may have granted you refugee status does not mean that country will also grant you refugee status.
Legal Status and Marriage
Given the importance of marriage or marital status to an individual’s overall ‘legal status’, it is helpful to have an understanding of key marital status terms used by the law.
Marriage
Marriage is the joining of two people in a legal relationship which carries with it significant rights and responsibilities. Federally, the Divorce Act provides that a judge may relieve the parties from the bonds of matrimony if the "spouses have lived separately and apart for one year immediately preceding the commencement of the proceedings…".
On a provincial or territorial level, the Matrimonial Property Act, which contains a list of joint property that is to be divided upon separation, is relevant for those who remain married and are seeking to separate.
Common-Law Marriage
Common-law spousal cohabitation refers to the shared cohabitation of a couple, but without the formal registering of the relationship or ceremony of marriage. It is a common misconception that cohabiting for a certain period of time common-law marriage is automatically recognized by law. Common-law spousal support arising from common law relationships is not automatic, however, such cases are decided on a case-by-case basis.
Civil Unions and Domestic Partnerships
Domestic partnerships and civil unions are more recent legal concepts that provide civil recognition of couples. Civil unions are available to same-sex and opposite-sex couples wishing to enjoy the same rights as married couples. Domestic partnerships are only available to same-sex couples in Ontario, British Columbia, New Zealand, Manitoba, New Brunswick, Saskatchewan and North West territories.
Amending Legal Status
Changing legal status of either natural or artificial persons can be complex, involving a range of procedural requirements. For example, when we talk about an employee changing from temporary to permanent status, many Latin American jurisdictions mandate that a certain period of time has passed, or that certain minimum salary level has been attained, or that a certain visa requirements have been met. Moreover, depending upon the jurisdiction in question, the thresholds and requirements for such changes are not universal. An educated guess about the requirements for one jurisdiction would not necessarily mean that these same requirements would also apply for another jurisdiction.
The same is true for the change of the legal status of artificial persons such as corporations. In such cases, in addition to filing fees and other document formalities that may be required, there are also procedures that must be followed with capital contributions if such companies are being converted from one form to another in order to comply with the accounting and tax laws. Changing the legal status of such entities involves similarly unique considerations.
In addition to the procedural hurdles that must be met to effectuate a change of legal status, there are legal implications as well, and these are often among the most complicated . One need only look at situations where persons of different legal status seek to alter their legal relationships – marriage or divorce are perhaps the prime example here, as are adoptions, emancipation, and so on – to see how frequently they end up before a judge, and how much flexibility there often is for a judge to exercise his or her discretion under the law. In the context of foreign investment, one need only think of the cases in which the changes of legal status of corporate entities change the outcome of investment treaty arbitration proceedings.
Natural persons often seek after-the-fact recognition of their changed status. For example, in the family law context, spouses may want to have a divorce declared by the court, or they may want to have a judge approve a marriage or adoption. At all times relevant, the applicable law is that of the country in which the declaratory judgment is sought, and the declaratory judgment will only have effect under the law of that country.
In the case of cooperative agreements, partnerships and other such entities, the recent trend in some jurisdictions has been to require such entities to register with or otherwise notify the relevant ministry or other governmental institution of their formation. This does not always create problems, but in addition to increasing bureaucratic costs, it can often lead to denials of the right to exercise rights and privileges provided for under those agreements or contracts.
