LAW 122 Lecture Notes - Lecture 5: Limited Liability Partnership, Sole Proprietorship, Legal Personality
7 Dec 2016
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Chapters 7, 8, 9, 10, 11, 12. Liability and benefits of entrepreneurs and other stakeholders differ depending on type used. Arises once a person begins to conduct business. Can only raise money by personal borrowing. As business grows, these problems continue to grow. Conclusion: a sole proprietor is best suited for a small business. No formal registration as a sole proprietorship is required (compare this to incorporation, where formal steps are required) But sole proprietors must comply with the general requirements imposed on all businesses. E. g. may need to register a doing business as (dba) name. May need to acquire a particular license, e. g. hot dog vendor permit or. There are no formal requirements for creating a partnership. = the creation of a partnership is automatic: a partnership comes into existence in law when two or more people carry on business together with a view to profit, without the need for any further formality.
