BUS670 Week 1 Assignment
Legal Underpinnings
BUS670: Legal Environment
Name:
Instructor Name:
Legal Underpinnings In case of breach of contract liability shall be limited or unlimited depending on the type of activity. There are five types of business organizations in the United States. These forms are sole proprietorship, a partnership, limited liability company, partnership, and limited liability company. Each of these formations business has advantages and disadvantages for the employer. There are different levels attributed to the owners and partners in each of these forms of business organization responsibility. As for the different levels of responsibility that owners and partners can help in selecting the appropriate form of organization for future business initiatives.
Limited Liability Corporations:
Business Name
Business Type
Personal liability
Tinker’s Home Security Service
Sole proprietorship
The sole proprietor's assets, personal and business-related, are all subject to a lawsuit (Seaquist, 2012).
Tinker & Tailor’s Home Security Service
General partnership
All the partner's assets (personal and business) are subject to a lawsuit (Seaquist, 2012).
Tinker & Tailor’s Home Security Service
Limited partnership
Limit in proportion to their respective contributions.
Tinker & Tailor’s Home Security Service, Inc.
Corporation
Liability is limited to one's investment (i.e., in shares of stock) (Seaquist, 2012).
Tinker & Tailor’s Home Security Service, LLC
Limited Liability Company
Limited to the extent of amount in limited liability clause of the company’s memorandum.
Limited Liability Corporations and Partnerships Starting a new business requires many decisions and much planning. One of the oldest and most important decisions is the way of the company, or the type of business entity. The common forms of business entities are sole proprietorships, partnerships, limited liability company (LLC) Limited Liability Partnership
BUS670: Legal Environment
Name:
Instructor Name:
Legal Underpinnings In case of breach of contract liability shall be limited or unlimited depending on the type of activity. There are five types of business organizations in the United States. These forms are sole proprietorship, a partnership, limited liability company, partnership, and limited liability company. Each of these formations business has advantages and disadvantages for the employer. There are different levels attributed to the owners and partners in each of these forms of business organization responsibility. As for the different levels of responsibility that owners and partners can help in selecting the appropriate form of organization for future business initiatives.
Limited Liability Corporations:
Business Name
Business Type
Personal liability
Tinker’s Home Security Service
Sole proprietorship
The sole proprietor's assets, personal and business-related, are all subject to a lawsuit (Seaquist, 2012).
Tinker & Tailor’s Home Security Service
General partnership
All the partner's assets (personal and business) are subject to a lawsuit (Seaquist, 2012).
Tinker & Tailor’s Home Security Service
Limited partnership
Limit in proportion to their respective contributions.
Tinker & Tailor’s Home Security Service, Inc.
Corporation
Liability is limited to one's investment (i.e., in shares of stock) (Seaquist, 2012).
Tinker & Tailor’s Home Security Service, LLC
Limited Liability Company
Limited to the extent of amount in limited liability clause of the company’s memorandum.
Limited Liability Corporations and Partnerships Starting a new business requires many decisions and much planning. One of the oldest and most important decisions is the way of the company, or the type of business entity. The common forms of business entities are sole proprietorships, partnerships, limited liability company (LLC) Limited Liability Partnership
References: Duermyer, R. (2008). Limited liability company (llc). Retrieved from URL http://homebusiness.about.com Gitman, L. J. (2006). Managerial finance, (11th ed. ). Pearson Education, Inc: Boston, MA LLC.com. (2008). Retrieved from URL http://www.llc.com