Legal Underpinnings of Business Law
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
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