Legal Underpinnings of Business Law Essay Example for Free

Legal Underpinnings of telephone circuit Law EssayThe key to limiting liability exposure is to realize where your company might be vulnerable. It is important to be able to recognize possible situations that make a company vulnerable. Knowing completely possible significant aspects of any liability associated to the type of blood line an owner wants to participate in is vital. A business owner should always understand and have working knowledge of all laws that apply to your business to prevent liabilities. Personal Business VentureMy future person-to-person business venture would a wear line for curvy women. As a curvy woman, it is very difficult to find non-geometric, non-tent like, flower patterned, pitiful business and casual clothing. The best business organizational form for this business would be an LLC. LLCs atomic number 18 easy to set up. Chose a business name that incorporates LLC, single file an article of organization, create an operating agreement, endure licenses and permits, hire employees, and finally open the doors.I would have variety of partners from textiles, designers, clothing producers, managers, and finally marketing specialists. The personal liability exposure would be minimal. With an LLC if I messed up the partners would not be responsible. The consequences are not as bad is if I was in a corporation. The LLC is more(prenominal) flexible. The positives are less record precludeing and more profit sharing. The state would have some say into my company so I would have to keep up with guidance regularly.The negative of this company is that once a member leaves, the entire company essential complete their duties and responsibilities and then dissolve. Another down fall is that self-employment tax contributions towards Medicare and Social Security. The net income of the LLC is subject to this tax. The national government does not recognize LLC as a business entity for taxation purposes, all LLCs must file as a corporation , partnership, or sole proprietorship tax return. Certain LLCs are automatically class and taxed as a corporation by federal tax law.