Legal Aspects of Business Assignment Help

Legal Aspects of Business Assignment Help
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It is crucial to look at the legal aspects when establishing a new business as the legal aspects may have a strong impact on the business in future. Before beginning the actual business, the primary step is to draw a comparison between the various possible legal forms of the business to ensure to cater to the objectives of the financiers. There are three fundamental legal forms of business that can be selected while establishing a new organization: partnership, proprietorship, and corporation.

Solitary Proprietorship

The solitary proprietorship is the most common, oldest, and easiest form of a business. This proprietorship is managed by a single person and is owned by a business. The common feature of this proprietorship is that the business and the owner are inseparable. Both are the same entity, and therefore, the owner has full control over the venture, its operations, and lawfully obligated for all legal actions and debts against the venture. One aspect is that taxes of sole proprietorship are assessed at the owner’s personal rate of income tax. In other words, this proprietorship does not make tax payments discretely from the owner. It is a good organization for a person establishing a business that is not big, does not validate the costs of ongoing and incorporating corporate formalities, and does not have tremendous experience with liability.

Partnership is a relation among two or more individuals from a business point of view. The individuals can include people, groups of people, organizations, and businesses. Thus, partnerships are extremely adaptable and can change with respect to complexity. Every partner gets a direct share in the profits of the business and shares control of the occupational processes, rendering the same as highly profitable for the proprietors in good situations. However, in adverse situations, the result of profit allocation is that partners are together accountable for the debts of the partnership.

A corporation is an entity of a business that a person or a group of persons own and they operate a business that exists legally. A corporate body is shaped for managing and regulating businesses. People work cohesively in a unit in a corporation and generate value or income. Corporations generate tremendous employment and have a huge impact on the social development and economic growth of a nation operating in the free market system. In addition, a corporation possesses responsibilities and rights similar to people and are liable to the law processes just like people are. A corporation has characteristics that include delegation of management to a panel of directors, some degree of liability of shareholders, and transferable shares.

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