...form of new business startup. Legal and tax issues are basic and can be followed without significant assistance from external sources. The business and owner are one in the same and all liabilities will fall upon them personally. The primary key to being a sole proprietor is the owner maintains independence in the decision making of the business and how he or she implements their business plan. LIABILITY: Individual and the business are treated in the same manner. The sole proprietor holds responsibility is for all losses and profits and has the additional responsibility of being personal liable for all actions of the business. INCOME TAXES: The sole proprietor profits are taxed as their personal income with only minimal tax incentives compared to other business models. Business profits or in the case of losses must be reported as personal income tax. LONGEVITY/CONTINUITY: Sole proprietorship can end their business at anytime without legal formalities. CONTROL: An SP business is operated as a single business owner. The control of the business cannot be given to anyone else. PROFIT RETENTION: The profits of the business belong to the owner of the business and are not shared. LOCATION: A sole proprietor is not limited to where it can operate within the United States. Only localized codes and regulations can affect where the business can be located. CONVENIENCE/BURDEN: Sole Proprietorships can be easily established. The burden lies in the legal and financial responsibilities...
Words: 4222 - Pages: 17
...1: The concept of legal personality could be defined as a person with lawful characteristics and qualities of a natural person. Being a natural person was not always enough to be considered as a ‘legal person’. However, women and slaves had to deal with difficulties with the law considering societies back then had a different view of them being recognized by the law as having legal rights, protections, privileges, responsibilities and liabilities under the law. the term and common law idea of "legal person" is to be visible and have a legal standing which, in other means, to be able to attract legal rights and assume legal obligations. If, however, a person was not considered to be recognized by the law, the human being will then be considered as a species of property that can only be bought and sold,(Davies and Naffine at casebook, 26). In that period of time, the subjugated Africans that were brought to America or Europe did not reach a ‘legal status’, hence were not considered as legal persons. As a result of not being granted legal status, they were treated as property to be bought and sold; they did not have control or ‘protection’ of their own lives. This lack of legal status affected their lives over the years; they were “bought and sold, treated as an ordinary merchandise and traffic, whenever a profit could be made by it. This opinion was at that time fixed universal in the civilized portion of the white race.” (Brettle Dawson, 2101T S1_Introduction, Carleton University...
Words: 1573 - Pages: 7
...Legal Issues for Business Organizations Sole Proprietorship The sole proprietorship is the most common form of business and has been around for many years. It is the simplest form of business because it is owned and operated by an individual. Some advantages to choosing a sole proprietorship would be minimal state and federal regulations, which make it easy to control and manage. Another is the cost to start a Sole Proprietorship is minimal. It is a good form of business for someone who is starting out small. In many cases this type of business can be operated out of the owner’s home. All business decisions are made by the owner, therefore he or she is entirely responsible for the operations, financial and legal aspects of the business. Some disadvantage to a sole proprietorship would be. The owner has unlimited liability and his personal wealth and assets are at risk to claims against the business. Another would be that raising capital is difficult for a sole proprietorship and is usually limited to the owner’s personal funds or credit available based on his personal credit history. Another key point to a sole proprietorship is that the business is not required to file or pay taxes. The sole proprietorship is a tax reporting entity, not a tax paying entity so the business taxes are filed at the personal rate of the owner on his personal income taxes. Business Services Sole proprietorship (May 20, 2008). Retrieved on (March 9, 2010) from Iowa Secretary of State. http://www...
Words: 2625 - Pages: 11
...decision. Ethical decision making is an intricate process where individuals must consider impact of decisions or actions resulting from the decisions made on individuals or institution. The basis of ethical decision-making encompasses balance and choice (Levin & Mather, 2012). Law is one of the professions that demands practitioners to make ethical decisions to avoid messing up their clients and third parties. They are required to employ American Bar Association (ABA) Model Rules of Profession Conduct throughout their professional undertakings. In the paradigm case, Justin King is involved in an accident and this has resulted to lawsuit. The circumstances surrounding the incident call for due diligence from both defendant (Justin) and his legal team. As such, there are various issues affecting this situation. The first issue is whether the ethical duty of confidentiality applies to Justin’s situation. Various laws and regulations govern a lawyer’s conduct. As indicated earlier, ABA Model of Rules of Professional Conduct is a set of principles that governs the conduct of lawyers in their endeavors. To narrow it down, rule 1.6(a) of the ABA Model Rules of Professional Responsibility states, “A lawyer shall not reveal information relating to the representation of a client unless the client gives informed consent, the disclosure is impliedly authorized in order to carry out the representation or the disclosure is permitted by paragraph (b).” ABA Model of Prof’l...
Words: 1314 - Pages: 6
...Dr. Ram Manohar Lohiya National Law University SYNOPSIS Interpretation of Statutes “External Aid for Interpretation: Need and Utility” Submitted To- Submitted by- Ms. Samreen Hussain Utkarsh Kumar (Teaching Associate, Dr. RMLNLU) 5th Semester B.A. LL.B. (Hons.) Roll No. - 145 Title: External Aid for Interpretation: Need and Utility Introduction: The object of interpretation of statutes is to determine the intention of the legislature conveyed expressly or impliedly in the language used. There are lot of rules and doctrines that have been evolved by the jurists for the purposes of determining the intention of the legislature. One of the rules and tools is the “external aid”. External aids are not part of the statute, unlike the internal aids. The court can consider recourse outside the Act such as historical settings, objects and reasons, bills, debates, text books, dictionaries etc. Recourse to external aid is justified only to well-recognized limits Objective: Researcher has two-fold objectives; the first being to present a conclusion that if there is actually any need of the external aid as a tool of interpretation, since there already exist a lot of other rules for this purpose? The second being that how the external aid has been used so far for the purposes of interpretation and if there is any scope for its better utilisation? Scope: The Project will be expanded so as so to cover almost every aspect related to the project topic. After the detailed...
Words: 443 - Pages: 2
...under. There are three main business structures in which entrepreneurs must establish their business. The following paper will detail the three business structures along with the advantages and disadvantages that each hold. Sole Proprietorships The first and most simple form of a business is a sole proprietorship. Within this form of business structure, the owner usually owns and manages all aspects of the business. Additionally, taxes are not paid on a sole proprietorship as a company; instead the owner pays taxes off of the income that is received from the business. As in all business structures, there are both advantages and disadvantages to operating as a sole proprietor. The advantages of sole proprietorships are minimal legal costs of formation; owners have absolute control over decision making and the ease of business sale. The disadvantages of sole proprietorships are all business decisions are the responsibility of the owner, lack of interest for investments and total liability of the business. Individuals that are seeking sole proprietorship would need to conduct a personal assessment to determine if they are fit to handle a business entirely on their own. Partnerships Partnerships are...
Words: 738 - Pages: 3
...Sole trader- This is an individual who is the only owner of their business; they do not have to pay registration fees but must register themselves as self-employed. Sole traders can employ people however they are still the full owners of their own business which means that they are entitled to all the profits made by the business. The disadvantage about being a sole trader is that the business is completely dependent on the owner, their personality and the business can either succeed or fail on you. Sole traders are the most common types of ownership in businesses because the sole trader can make all the decisions himself without depending on others. Sole traders also have unlimited liability, the problem with this is that the owner is personally liable for the debts the business gets and this is risky for businesses who need a lot of money to invest. A Public limited company is where the others can buy shares into the business and - cost, paperwork A limited company is a company in which the liability of members or subscribers of the company is limited to what they have invested or guaranteed to the company. Limited companies may be limited by shares or by guarantee. And the former of these, a limited company limited by shares, may be further divided into public companies and private companies. Who may become a member of a private limited company is restricted by law and by the company's rules. In contrast anyone may buy shares in a public limited company. Things...
Words: 1198 - Pages: 5
...Niels Laasholdt Steen Sloth Gitte Størup Marianne Poulsen BUSINESS ECONOMICS – AN INTRODUCTORY CASEBOOK FOR THE COMMERCIAL UPPER-SECONDARY COURSE (HHX) 1 BUSINESS ECONOMICS – an introductory casebook for the commercial upper-secondary course (HHX) © 2005 the authors and Systime A/S Copying from this book is only permitted subject to agreement between Copy-Dan and the Danish Ministry of Education. External editing: Knud Erik Bang Cover: Valentin Design Typeface: Adobe Garamond Pro 11/14 Graphical layout and production: Valentin Design 1st edition, 1st impression ISBN 87-616-1304-5 Skt. Pauls Gade 25 DK-8000 Århus C Tlf. (+45) 70 12 11 00 www.systime.dk Table of contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1. Companies and their context . . . . . . . . . . . . . . . 1.1 Introduction . . . . . . . . . . . . . . . . . . . . . 1.1.1 The national economy . . . . . . . . . . . . . 1.1.2 Business economics. . . . . . . . . . . . . . . 1.1.3 Private finances . . . . . . . . . . . . . . . . . 1.1.4 The content of this textbook . . . . . . . . . . 1.2 What is a company? . . . . . . . . . . . . . . . . . 1.3 Types of company. . . . . . . . . . . . . . . . . . . 1.3.1 Production companies . . . . . . . . . . . . . 1.3.2 Trading companies . . . . . . . . . . . . . . . 1.3.3 Service companies . . . . . . . . . . . . . . . 1.4 Company functions. . . . . . . . . . . . . . . . . . 1.4.1 Functions in a trading company . ....
Words: 48419 - Pages: 194
...A possible offence for Harry is Unlawful Act Manslaughter; the Actus Reas of unlawful act manslaughter is the unlawful killing of a human being. The prosecution must prove that the defendant has committed an unlawful criminal act which has resulted in the death of the defendant In the case of Lamb there was no initial crime as they believed a bullet could only be fired when it was in the chamber opposite the guns hammer so neither expected it to fire In this case the unlawful act was speeding up and driving directly at Kim making her fear force. As well as fearing unlawful force the initial crime must be dangerous to establish whether it was dangerous the objective test is used, this is whether a reasonable person would recognize the act could at least cause some harm to the victim. In Dawson the defendant attempted to rob a garage wearing a mask and carrying a fake gun and a pick axe handle, the 60 year old V had a heart attack shortly after but because the cause was unknown the defendant wasn’t guilty, whereas in RvWatson the defendant burgled the house of a very frail 87 year old, he died of a heart attack, it would be obvious to a reasonable person that a man in his condition would be vulnerable to shock. In this case Harry driving at speed towards Kim was dangerous a reasonable person would recognise the risk of driving at someone at speed. . It must be an act an omission is not sufficient, In RvLowe he neglected his child and as this is an omission so therefore he wasn’t...
Words: 935 - Pages: 4
...FACTS: Bart has mislaid his personal property and is offering a reward for its return. Alan hasfound Bart’s property and is demanding the reward as a pre-condition to its return. ISSUE: The issue in this case is whether Alan can demand the reward as a pre-condition to the return of Bart’s property, under Oregon law. RULES: In MacFarlane v. Bloch, 9 Ore. 1 (Or. 1911), the plaintiff, MacFarlane, found a pocketbook which contained promissory notes worth $1,000 belonging to the defendant, Bloch. Plaintiff withheld the notes demanding the reward be paid before their return. The defendant refused to pay the reward and had the defendant arrested for larceny. Subsequently, the plaintiff filed a suit against the defendant for the reward and prevailed. The state’s highest court found that if the plaintiff had made a good faith attempt to locate the true owner for the purpose of returning the lost property, they would be entitled to the reward. In Watts v. Ward, 1 Ore. 86, 88 (Or. 1854), the plaintiff found horses owned by the defendant, Ward. While being returned to the owners, the finder used the horses for work purposes where they subsequently perished. The plaintiff contended that he was due monetary compensation for the expenses incurred while returning the lost horses to the defendant. The fact that the horses did not survive, the true owner asserted the belief that the finder was not entitled to payment. The instant court found that since a reward was not offered...
Words: 392 - Pages: 2
...Comparisons Business Form Comparisons Western Governors University The different forms of business are sole proprietorship, which is already in use by the client; general partnership; limited partnership; c-corporation; s-corporation; and Limited Liability Company. The client is currently unsatisfied with the sole proprietorship, which is the easiest type of business to begin and to run, but which doesn’t fit the client’s needs any longer, since the business has expanded exponentially over the past few years. Sole Proprietorship: The sole proprietorship does have several advantages. It is easy to start and inexpensive to operate. • Taxes: The owner does not have to file a separate tax return, and all profits and losses are reported on the owner’s personal tax return. • Control: The owner retains all control and makes all decisions regarding the business, and of course, reaps all the profits. • Location: Even if the owner expands the operation into another state, it is unlikely to cause trouble, though the owner might need to get a business license or register the business’s name. • Liability: Under the sole proprietorship, the owner is directly responsible for all the debts incurred by the business. The owner is also liable for any injuries that might happen as a result of business activities. Capital is also problematic; personal debt is usually the sole source of financing, because there are no stocks or memberships...
Words: 1908 - Pages: 8
...1. What are the differences between these three business entities? Sole Proprietorship, Partnership or a Corporation. A sole proprietorship is when one individual owns a business and is the person responsible for it. This person holds all the responsibility in liabilities and liability claims, but will also be the sole person to collect profit, if there is any. Sole proprietorships are subject to few government regulations and are easy to start, however, there is unlimited liability and capital can be very difficult to raise. A partnership is similar to a proprietorship, but involves more than one person. It can share the advantages of a proprietorship in collecting profit, but is still subject to liability and can still share the same issues in raising capital. Limit liability partnerships can be formed in order to protect those people’s assets in case the business goes under. A corporation is a business entity that is completely separate from its owners. A corporation holds its own limited liability from its owners. It acts to increase value for the stockholders in the company who provide it capital. Corporations, unlike partnerships and proprietorships, can continue to run long after the owners have passed on. It is easier to raise capital in a corporation, but the owners are subject to double taxation. The corporation is first taxed by the government and then the individual is taxed on their personal income. Corporations are heavily regulated and require much more...
Words: 350 - Pages: 2
...Mark Down is 74 years old and getting sick. He executed a Will that leaves all of his assets to his children; Mark also executed a power of attorney, giving his son, Slowe, the power to handle all of his financial assets. Mark is getting sick and losing competency. Mark has $300,000 in a Brokerage account, which Slowe would like to transfer to his father’s children to try and remove Marks assets to allow him to be eligible for Medicaid benefits. The issue presented is whether Slowe Down, under Power of Attorney, is able to transfer his father’s assets to his children. In Matter of Ferrara, 7 N.Y.3d 244 (N.Y. 2006), the New York appellate court stated that an attorney in fact could make “gifts to the principal's spouse, children, and more remote descendants, and parents, not to exceed in the aggregate $ 10,000 to each of such persons in any year.” However, Matter of Ferrara also states that “such gifts may not exceed $ 10,000 unless the statutory short form power of attorney contains additional language…such gifts may not exceed $ 10,000 unless the statutory short form power of attorney contains additional language.” The case also went on to say that the gift-giving authority means that “the principal authorizes the agent to make gifts either outright or to a trust for the sole benefit of one or more of the specified persons only for purposes which the agent reasonably deems to be in the best interest of the principal, specifically including minimization of...
Words: 497 - Pages: 2
...MEANING, CHARACTERISTICS AND TYPES OF A COMPANY INTRODUCTION Industrial has revolution led to the emergence of large scale business organizations. These organization require big investments and the risk involved is very high. Limited resources and unlimited liability of partners are two important limitations of partnerships of partnerships in undertaking big business. Joint Stock Company form of business organization has become extremely popular as it provides a solution to overcome the limitations of partnership business. The Multinational companies like Coca-Cola and, General Motors have their investors and customers spread throughout the world. The giant Indian Companies may include the names like Reliance, Talco Bajaj Auto, Infosys Technologies, Hindustan Lever Ltd., Ranbaxy Laboratories Ltd., and Larsen and Tubro etc. 1.2 MEANING OF COMPANY Section 3 (1) (i) of the Companies Act, 1956 defines a company as “a company formed and registered under this Act or an existing company”. Section 3(1) (ii) Of the act states that “an existing company means a company formed and registered under any of the previous companies laws”. This definition does not reveal the distinctive characteristics of a company . According to Chief Justice Marshall of USA, “A company is a person, artificial, invisible, intangible, and existing only in the contemplation of the law. Being a mere creature of law, it possesses only those properties which the character of its creation of its creation confers...
Words: 114216 - Pages: 457
...A federal agent is reporting to his first post of duty after the academy to a small resident office at which you work. You and a few others are included in a meeting to provide administrative support for his first assignment. In the discussion, you learn that there is a large roundup of gang members scheduled for the following day at 6:00 a.m. It is a federal case but is being supported by approximately 50 local officers and state troopers. A briefing is scheduled at 6:00 p.m. for the officers involved in tomorrow's arrests. Individual Portion: Each individual will share 3 deliverables with each other in the group and will provide a copy for the instructor for accountability of participation in the group. The following are the deliverables: A 1-page bulleted list of 10 points that are the more important in your view on properly processing a defendant in a federal investigation. A 1-page outline on the best way to format and present the federal criminal pretrial process, which includes jury selection, evidence and jury instructions. Please provide examples in your outline of your recommended format for presenting the process. A 1-page draft of how to present the processing requirements and the mandated pretrial measures required by law. Please add your file. Group Portion: As a group, you will take all the information that you have attained in the individual portion and decided to use for coordinating the information for briefing on the process at the federal...
Words: 524 - Pages: 3
