LAW 3102 Lecture Notes - Lecture 10: Sole Proprietorship, General Partnership

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5 Mar 2018
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Professor
Mar 5 2018
Sole proprietorship → anyone running business in sole capacity ( if you do nothing at all but you
run a business you are a sole proprietor) → most basic business structure
General Partnership → do nothing at all, run a business, but with someone else
Limited Partnerships→ take care of issues such as liabilities
1. Ease and fees
a. expenses
b. how easy is it to register?
Forum shopping is very critical
Liability Issues
→ sole prop & general pship → you’re on the hook for everything you’ve got
so liability is key
protect owners more
the more sophisticated the business → more there are corporate governance issues
conflict btw agents (Chief execs) and shareholders
corporate entities are the easiest to transfer
the more large/ public/and pure corporation it is→ the easier it is to transfer ownership
in partnership easier to sell shares/profits/gains rather than sell partner rights/ title
capital is something all businesses need
IPO- only when company is becoming publicly traded
single owner
→ you start and are the sole owner
no legal distinction btw. owner and business
simply just start the business
if you register under fictitious name → must register name with county clerk
All income and expenses are reflected on the owner’s taxes
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