Legal Forms of Business - 1082 Words

Legal Forms of Business: Week 2 Legal Forms of Business In business, the first decision that is made is usually the most difficult. When making business decisions, the owner must decide what types of business organization is the best for the company. There are seven forms of business that will be discussed as well as scenarios in which each of these forms of business would be the preferred form. This paper will also justify why the corresponding business form is preferred. The forms that will be discussed are: sole proprietorship, partner, limited liability partnership, Limited Liability Company, S corporation, franchise, and corporate form. Sole Proprietorship A Sole Proprietor is someone who owns a business by†¦show more content†¦S corporation status provides many of the benefits of partnership taxation and at the same time gives the owners limited liability protection from creditors. Scenario: A company that is taxed as a corporation, has more than 100 shareholders, and has one class of stock, cl assifies the company as an S Corporation. Franchise A franchise is a right granted to an individual or group to market a company s goods or services within a certain territory or location. There are companies that fall up under the franchise umbrella such as McDonald’s, Subway, and Pizza Hut. Many people think of restaurants or fast food businesses when they think of franchise. There are over 120 different types of franchise that consist of automotive, health and fitness, financial services, and cleaning and maintenance, just to name a few. Scenario: A person is interested in starting a business and would like to own a Taco Bell. The best form to use is the franchise. This would require the owner to buy into the franchise. Corporate The Corporation form is used to solve the typical problems of the partnership. Incorporating allows a group of owners to act as one. This is similar to the way a partnership is operated as well. Since a corporation is a separate legal en tity capable of being sued, it can protect its owners by absorbing the liability if something goes wrong. In a corporation, the owner is allowed to hireShow MoreRelatedLegal Forms of Business1415 Words   |  6 PagesLegal forms of Business The process of starting a business can be a challenging one. From choosing a business name, identifying the product to sell and where all require thoughtful decisions. All these decisions also need legal and practical considerations. To understand more about the different forms of business, it is important to consider the right structure for the business (Legal Forms, 2006). Sole Proprietorship A sole proprietorship simply means a business with one owner. With many formsRead MoreThe Legal Forms Of Business997 Words   |  4 Pagesit can be said as they are in partnership type of business. The legal forms of the business are named UNINCORPORATED AND INCORPORATED FORMS AS: 1. Unincorporated form a. sole trader b. partnership c. trust d. franchise 2. Incorporated forms a. incorporated not for profit associations b. cooperatives (non-profit or business) c. company/corporation (registered under the corporation’s act 2001) The partnership is an unincorporated form of business as they are not incorporated under the corporations’Read MoreThe Legal Forms Of Business1329 Words   |  6 Pagesof all, there are three legal forms of business, which consist of sole proprietorships, partnerships, and corporations. People can run a business in these three types of ways, which in some ways each type of business has its benefits and has its losses. Also, setting up a business needs to be planned out, and have expectations on how the business needs to run. People can’t just go out and start a business without having any plans. If a person did that, then that business would not last long at allRead MoreThe Legal Forms Of Business2782 Words   |  12 Pages Final Paper: Legal Forms of Business Samantha Simpfenderfer Cazenovia College â€Æ' When developing and establishing a business, a business owner must first consider what type of legal business that they would like to create and own. In the United States, businesses that vary in form are recognized and represented in court in varying ways. In some forms of business, the personal assets of the business owner are not protected, where in others, a business owner could never risk losing assetsRead MoreLegal Forms of Business Paper938 Words   |  4 PagesLegal Forms of Business Paper Law/531 June 3rd, 2011 University of Phoenix Legal Forms of Business Paper Selecting the best form of operating a business depends on the type of business the owner wants to run. The owners have to pick the structure that best meets their needs. â€Å"The selection depends on many factors, including the ease and cost of formation, the capital requirements of the business, the flexibility of management decisions, government restrictions, personal liability, taxRead MoreLegal Forms of Business Paper1131 Words   |  5 Pageshead: LEGAL FORMS OF BUSINESS PAPER Alumina and BP Scenario Collaborative Analysis University of Phoenix Pedro E. Grave de Peralta LAW531-Business Law Ken Marc July 28, 2012 This paper will be discussed, as well as explaining sole proprietorship, partnership, limited liability partnership, Limited Liability Company, S corporation, franchise, and corporate form found thisRead MoreEssay on Legal Forms of Business939 Words   |  4 Pagesperson has an innovative plan to start a business. It begins with an idea but what should they do afterwards. If someone wants to start a business they must ask themselves several questions. What is the size of the business? What level of control do they want to have? What are the business risk and vulnerabilities? What are the initial startup expenses? All of these questions will help them decide which legal form of business they should choose. As a legal form can have significant implications forRead MoreTypes Of Legal Forms Of A Business1218 Words   |  5 PagesMaking business needs to adapt some legal form so that the corporate can operate the state legally, but it is not easy to know the right title that commerc ial need to carry for that reason must search all the forms and choose the right one that can progress future benefit. So, there are several legal forms that would need to be adopted for many reasons as a going to build a corporate, and it is important to know what we need to sell and the size of the operating company. The company must know whatRead MoreDifferent Legal Forms Of Business Combinations1039 Words   |  5 Pagesseveral different legal forms of business combinations. These forms include a merger, an acquisition, or a hostile takeover. When a merger takes place, two company’s combine to either form a new corporation, or amalgamate into one of the two old companies. These mergers can be either friendly or unfriendly in nature. When an amicable merger occurs, both the acquiring and acquired companies’ board of directors and executives work together to create terms for combining the new business. These terms areRead MoreLegal Forms of Business in Sri Lanka4360 Words   |  18 PagesIntroduction A business also called a company, enterprise or firm is a legally recognized organization, designed to provide goods and services to consumers. According to the purpose of the business, ownership of the business and nature of economic contribution of the business; the business can fall into one of the three standard sectors. There are; private sector, public sector and nonprofit sector. The part of the economy concerned with providing basic government services is called public