Legal Forms of Business

Legal Forms of Business Paper Sandya Kuttappa LAW/531 Business Law 2nd April 2012 instructor: Dr. Linda Fried Introduction When receiveing a handicraft it is crucial to choose a form that is right, to ensure that investment is protected, profitability is maximized and benefits of taxation ar reaped. It is essential that you decide whether you want to fly solo, include partners, drop dead a limited liability company (LLC), or peril into forming a corporation. Theres no right or vilify choice that fits every iodin. Your job is to understand how apiece legal social organization works and then pick the one that best meets your call for (Inc.com). The best part about the legalities of starting a business is that you ass castrate its form as you go along. For example, if you start out as a sole possessor, you can change it to a general league, a limited liability stake or even a corporation, depending on how the business grows. In this paper we shall review the various forms and explain why each form is better suited to that business despite the drawbacks. sole Proprietorship The main feature of a sole proprietorship is that it has a single owner. In this type of business, all the controls lie with one person.

A sole proprietorship is a business with a single owner and not registered as a corporation, partnership or limited liability company. A sole proprietor can work as an independent contractor or operate a small business. Sole proprietors own businesses in many industries. Many home-based businesses are operated by sole proprietors (Johnson Rose, p1.). A classic example of such a business would be a barber shop, owned by Mr. Jack Jones called Joness Cuts. At Joness Cuts all the hiring, firing, operations and profits or losses are handled by Jack. This is one of the largest forms of business today because it can be easily started, requires minimal capital, control is centralized, it can be sold or transferred easily and the owner does not pay corporate taxes.... If you want to get a bounteous essay, order it on our website: Orderessay

Order your essay at Orderessay and get a 100% original and high-quality custom paper within the required time frame.