Business Legal Structures Essay Example | Topics and Well Written Essays - 1250 words

Business good Structures - Essay ExampleThe owner of the air is usu whollyy the person who runs the day-to-day activities and responsibilities of the championship (Kuratko & Hodgetts 190). Accordingly, that one somebody also owns all properties and assets of the business, and all the profits realized from the business procedures. As such, these individuals are also accountable for all the debts or liabilities, as the law and the public views that individual as the same entity with the business (Miller & Jentz 530). Although it is looked upon as a business easy to run with several advantages, it has a number of disadvantages as well. The merits of sole proprietorship are that it is the least expensive type of business in both formation and organization, and the proprietor has occur control over the business, thus allows business decision making according to their appropriation by the business law parameters (Miller & Hollowell 385). In addition, the owners receive all the profi ts from the business, no additional taxation, no business insurance coverage to government agencies, and easy dissolution if so desired. Further, the owner of the business only has to secure the few judicial requirements like tax identification number, necessary licenses, and certificates to start business operations. It is only this form of business operation where decision making is fast. This is because the owner does not need to make consultations as it is the case with other forms of business managements. The most significant demerit of sole proprietorship is that the proprietor has unlimited liability, and thus legally responsibleness for all liabilities or debts of the business. Other disadvantages include the difficulty of selling or transferring part or all of the business resulting from the tax consequences associated with converting this from of business to a corporation or company (Miller & Jentz 532). In addition, the proprietor lacks pecuniary support as enjoyed by other forms of legal structures, and the business risks failure on the incapacitation of the proprietor as all management responsibilities lies upon them. Again, the business has difficulties in attracting high-caliber employees, as well as deducting some employee benefits like medical checkup insurance. If it happens that the business in its operation incurs a loss, the proprietor suffers it alone, with no one to share the liability with. federation The second form of business is partnership. A partnership is a form of business where ownership lays amidst two or more people. Similar to sole proprietorship, the laws does not recognize business partnerships as antithetical entities from their owners (Laro & Pratt 88). There are, however, limited liabilities partnerships where the liability of the partner is limited to their share of investment in the business, though in that respect must be at least one partner who remains liable (unlimited) for the debts of the business (Kurat ko & Hodgetts 192). Nonetheless, the partners is take to have a legal agreement that stipulates how decisions concerning the business will be made, profit sharing, resolutions of disputes, admission of emerging