Legal Issues For Business Organizations

Submitted By brianc10982
Words: 3057
Pages: 13
Open Document
LIT1: Legal Issues for Business Organizations

When evaluating your current situation, I thought it was best to just lay out to you all of your options, with the pros and cons to each. After detailing each specific type of corporation option, I will provide you with my final analysis which will be included in the memorandum that follows all of the given information. If you have any questions or comments for me, please just reply to the memo and we will schedule a sit down talk, where we can finalize any change you would like to make, as well as provide you with the paperwork you will need.
Sole proprietorship A sole proprietorship presents a business where there is no direct distinction between the business and the owner in terms of legality. A sole proprietorship is, in most cases, is a company that is owned, ran, and overseen by one individual. The owner would reap all the reward, but also deal with all loses. He or she would receive all profits, minus those that are taxable, and they would also be responsible for any debt or losses that the company accrues. Every asset of the business is owned by the proprietor and all debts of the business are the proprietor's, therefore, the owner has no less liability than if they were acting as an individual instead of as a business. When becoming a sole proprietor, all business losses or income must be reported on your personal income taxes. It is not necessary to file taxes related to the business separately. It is a "sole" proprietorship in contrast with partnerships. It can be said that a person who owns a business on their own, is entitled to income that said business earns. Another way to look at it is, although a single business owner may have several employees working on his behalf, it is still controlled solely by that owner. The option of naming his or her business, something other than their legal name, is totally the choice of the sole proprietor. In many jurisdictions there are rules to enable the true owner of a business name to be ascertained. Different countries have different regulations in regards to the filing of a business name. In the United States the requirement is to file a statement with the local authorities that you are doing work. In the United Kingdom the requirements are simpler as the proprietor's name must be displayed on business emails, cards, and at the business location. One negative to a sole proprietorship is the possible longevity of the business. Due to the fact that a sole proprietorship is ran by a single person, there is always the chance of illness or other tragic events that can derail the business. Sometimes, with no one to turn to, this can cripple the company and shut it down.
General partnership Partnerships have certain similarities that relate to how the relationship transpires in the outside world, and how the relationship between partners transpires in regards to the business itself. In terms of the business aspect of the relationship, rules and guidelines can be set to make sure that relationships stay intact, no matter what the circumstances. Outside of the business anything can happen, and the agreement between the partners does not apply. Business assets are always owned on behalf of other investing partners. These partners are each responsible for debts and taxes to name a couple. They are also each personally responsible for tortuous liability. An example of this would be if for any reason the partnership would default on a loan, or on a payment to a creditor, the partners’ personal assets couple be in trouble. They would be subject to liquidation to account for payments to the creditors. In most cases, any profit that the company earns, are shared among all partners, and in most instances they are distributed evenly. Normally in a “general partnership” there is some sort of agreement among the partners. This agreement will almost always explain how profits are distributed, and in
Show More

Related Documents: Legal Issues For Business Organizations

Canadian Business And The Law

Study Guide to accompany Canadian Business and the Law, 5th edition Chapter 6 CHAPTER 6 FORMING CONTRACTUAL RELATIONSHIPS Objectives After studying this chapter, you should have an understanding of • how negotiations lead to a contractual relationship • how negotiations can be terminated • the legal ingredients of a contract • how contracts can be amended or changed Learning Outcomes • • • Understand how business negotiations can result in the formation of a contract or terminate without legal…

Words 3867 - Pages 16

Law and Business Essay

Tiffany Ly Business Law February 11, 2011 Robinson Law and Business Natural law is one of the oldest of its kind. The natural law theory believes that there is a higher law and it applies to all human beings and if a law is unjust then it does not have to be obeyed. Natural law is based on fairness and equity and this can easily relate back to the world of business. One major question that lies in international business is whether or not foreign employees should have the same protection…

Words 620 - Pages 3

Business Law Paper

Business Law Term Paper Legal Analysis of Dating Site User Agreement Chosen Site: eHarmony BUSI 2601B Dr. G. Levasseur March 8th, 2015 Table of Contents I Executive Summary 1 II Introduction 3 Overview and Objectives: 3 Methodology: 3 Business Relationship: 5 III Clausal Description and Explanation 6 Document 1: Privacy Policy (3 pages) 6 Document Two: Terms of Service (five pages) 18 IV Application of Legal Principles 32 V Lessons Learned, Recommendations and Example Scenario 46…

Words 15495 - Pages 62

Essay on Business Law

the Congress can regulate a local business if doing so is in the national interest. This includes situations where the actions of many small businesses taken together could have an inter-state effect. In Heart of Atlanta Motel v. United States case, the court decided that a local hotel would have to comply with federal stature and follow the requirements of the Civil Rights Act of 1964, because it is part of the commerce/travel. Even though it is a local business, the Congress has the power to regulate…

Words 2277 - Pages 10

Essay on Business Law

Business Law “The doctrine laid down in Salomon v Salomon & Co Ltd [1897] AC 22 has to be watched very carefully. It has often been supposed to cast a veil on the personality of a limited company through which the courts cannot see. But that is not true. The courts can, and often do, draw aside the veil. They can, and often do, pull off the mark. They look to see what really lies behind” - Lord Denning in Littlewoods Mail Order Stores v Inland revenue Commissioners [1969] 3 All ER 422.…

Words 1964 - Pages 8

Business Law Notes

Chapter one Business Law Law is a set of rules, enforceable by the courts, which regulate the government of the state and governs the relationship between the state and its citizens and between one citizen and another. There are various ways in which the law may be classified; the most important are: * Public and private law * A) Public law is concerned with the relationship between the state and its citizens. Specialised areas are: 1. Constitutional law is concerned with the workings…

Words 34659 - Pages 139

Business Law Essay

Resources in a Business Context BUS 746 Law Assignment 1A Amit Bhanot S12003170 Question Two ‘Equally, it is recognized that the formal and rather intimidating atmosphere of the ordinary courts is not necessarily the most appropriate one in which to decide such matters. Even where the dispute cannot be resolved internally. In recognition of this fact, various alternatives have been developed specifically to avoid the perceived shortcomings of the formal structure of law and court procedure…

Words 2072 - Pages 9

Business LAW Essay

sovereign power. State regulatory powers are often referred to as: police powers. In an equal protection inquiry, when a law or action distinguishes between or among individuals, the basis or classification, is examined. Depending on the classification, the courts apply different levels of scrutiny or “tests” to determine whether the law or action violates the equal protection clause. The courts use one of three standards: strict scrutiny, intermediate scrutiny, or the: “rational…

Words 980 - Pages 4

Essay Business Law

Name of Partnership: The name of the partnership shall be JDM Lawn Care. Place of Business: The partnership’s place of business shall be at 123 Green Way, Greenwood SC 29649 Purpose of Partnership: The purpose of the partnership are for regular lawn care maintance, landscape design, and project management. In addition to the specific purposes set above, the pupose of the partnership is also to conduct a lawful business in which the partners might come engage.…

Words 3578 - Pages 15

Business Law Essay

Business Law Law- the body of rules that can be enforced by the courts or by other government agencies. Sophisticated Client- Person who understands the role of a lawyer and knows when to represent himself/herself and when to get the help of a lawyer. They understand the cost associated with a lawyer and how the process works. Legal Aid- Legal help for people who cannot afford a lawyer. Civil Law- A list of codes that judges apply to cases. Common Law- Law based on past decisions made by the…

Words 1269 - Pages 6