Legal Underpinnings of Business Law

Topics: Corporation, Business law, Limited liability company Pages: 2 (612 words) Published: July 1, 2013
Legal Underpinnings of Business Law
OMM 670: Legal Environment
February 25, 2013

Legal Underpinnings of Business Law
Business| Type of Business| Liability Exposure| Compare| Contrast| Tinker’s Home Security Service| Sole proprietorship| Unlimited| Monetary rewards are from both the Proprietor & business | Sole Liability | Tinker & Tailor’s Home Security Service| General partnership| Unlimited| All partners are responsible whether silent or active | If you are named in the business you are a partner and also liable| Tinker & Tailor’s Home Security Service| LP| Limited| To obtain funding for a business venture-will only loose what is put in | My not participate in the business decisions| Tinker & Tailor’s Home Security Service, Inc.| Corporation| Unlimited| Unlimited monetary rewards| Business reputation ruined | Tinker & Tailor’s Home Security Service, LLC| LLC| Limited| Business and members are treated separately-limited life/taxes| Full Liability Multiple members or one member|

Limit Liability Exposure
The key to limiting liability exposure is to realize where your company might be vulnerable. It is important to be able to recognize possible situations that make a company vulnerable. Knowing all possible significant aspects of any liability associated to the type of business an owner wants to participate in is vital. A business owner should always understand and have working knowledge of all laws that apply to your business to prevent liabilities. Personal Business Venture

My future personal business venture would a clothing line for curvy women. As a curvy woman, it is very difficult to find non-geometric, non-tent like, flower patterned, ugly business and casual clothing. The best business organizational form for this business would be an LLC. LLC’s are easy to set up. Chose a business name that incorporates LLC, file an article of organization, create an operating agreement, obtain...
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