Business Entities and Liabilities Repaired 
BUS 670 Legal Environment of Business
Business Entities & Liabilities
Instructor Leah Westerman
May 19, 2014
Businesses Entities and Liabilities
“A business entity is an organization established as a separate existence for the purposes of taxes (BusinessDictionary.com, n.d.).” Some of the most common known business entities are; sole proprietorships, general partnerships, limited partnerships, corporations, and limited liability companies. Each business entity has its advantages and disadvantages. With each business entity, there are different types of personal liability exposure as an owner (see Table 1). I currently own five different businesses and each one of them is a different type of business entity.
“Tinker’s Home Security Service (sole proprietorship)
Tinker & Tailor’s Home Security Service (general partnership)
Tinker & Tailor’s Home Security Service (limited partnership)
Tinker & Tailor’s Home Security Service, LLC (limited liability company)
Tinker & Tailor’s Home Security Service, Inc. (corporation)”
Table #1
Business Entities and Liabilities
Sole Proprietorship
“The sole proprietor’s assets, personal and business-related, are subject to a lawsuit (Seaquist & Coulter, 2012).”
General Partnership
“All the partner’s assets (personal and business) are subject to a lawsuit (Seaquist & Coulter, 2012).”
Limited Partnership
“Two or more partners (general and limited) one general partner has unlimited liability of the business, the limited only to the limit of their capital investment (Seaquist & Coulter, 2012).”
Limited Liability Company
“Liability is limited to one’s investment and personal assets are usually exempt, members are not fully shielded (SBA.gov, n.d.).”
Corporation
“Liability is limited to one’s investment (i.e., in shares of stock) (Seaquist & Coulter, 2012).”
Note: Adapted from “Sole Proprietorships and Partnerships,” by Seaquist & Coulter, 2012, Business Law for Managers, Chapter 28. Copyright 2012 by Bridgepoint Education Inc.
Business Entities & Liabilities
Instructor Leah Westerman
May 19, 2014
Businesses Entities and Liabilities
“A business entity is an organization established as a separate existence for the purposes of taxes (BusinessDictionary.com, n.d.).” Some of the most common known business entities are; sole proprietorships, general partnerships, limited partnerships, corporations, and limited liability companies. Each business entity has its advantages and disadvantages. With each business entity, there are different types of personal liability exposure as an owner (see Table 1). I currently own five different businesses and each one of them is a different type of business entity.
“Tinker’s Home Security Service (sole proprietorship)
Tinker & Tailor’s Home Security Service (general partnership)
Tinker & Tailor’s Home Security Service (limited partnership)
Tinker & Tailor’s Home Security Service, LLC (limited liability company)
Tinker & Tailor’s Home Security Service, Inc. (corporation)”
Table #1
Business Entities and Liabilities
Sole Proprietorship
“The sole proprietor’s assets, personal and business-related, are subject to a lawsuit (Seaquist & Coulter, 2012).”
General Partnership
“All the partner’s assets (personal and business) are subject to a lawsuit (Seaquist & Coulter, 2012).”
Limited Partnership
“Two or more partners (general and limited) one general partner has unlimited liability of the business, the limited only to the limit of their capital investment (Seaquist & Coulter, 2012).”
Limited Liability Company
“Liability is limited to one’s investment and personal assets are usually exempt, members are not fully shielded (SBA.gov, n.d.).”
Corporation
“Liability is limited to one’s investment (i.e., in shares of stock) (Seaquist & Coulter, 2012).”
Note: Adapted from “Sole Proprietorships and Partnerships,” by Seaquist & Coulter, 2012, Business Law for Managers, Chapter 28. Copyright 2012 by Bridgepoint Education Inc.
References: Beth Laurence, J. (n.d.). Corporation Basics. Retrieved May 19, 2014, from nolo.com: http://www.nolo.com/legal-encyclopedia/corporation-basics-29867.html BizFilings.com. (2012, May 24). Sole Proprietorships and General Partnerships Are Risky Business Forms. Retrieved May 18, 2014, from bizfilings.com: http://www.bizfilings.com/toolkit/sbg/run-a-business/assets/sole-proprietorships-general-partnerships-risky.aspx BusinessDictionary.com. (n.d.). Business Entity. Retrieved May 17, 2014, from BusinessDictionary.com: http://www.businessdictionary.com/definition/business-entity.html Larson, A. (2004, August). The Sole Proprietorship. Retrieved May 18, 2014, from Expertlaw.com: http://www.expertlaw.com/library/business/sole_proprietorship.html SBA.gov. (n.d.). Limited Liability Company. Retrieved May 18, 2014, from SBA.gov: http://www.sba.gov/content/limited-liability-company-llc Seaquist, G., & Coulter, K. (2012). Business Law for Managers. San Diego: Bridgepoint Education, Inc. The LLC Company . (n.d.). When LLC Owners Can Be Liable. Retrieved May 19, 2014, from the-llc-company.com: http://tm/limited-liability/llc-owners-liable/ usa-corporate.com. (n.d.). Most common types of business entities. Retrieved May 18, 2014, from usa-corporate.com: https://www.usa-corporate.com/setting-up-a-us-company-as-a-non-us-resident/types-of-business-entities/