Lit Task 1 a&B Essay

| It is impossible to add additional owners and to pass on business, business dies with owner. A single owner

Many believe that liability is a biggest issue in a general partnership than in a sole proprietorship. The owners of the company are still fully liable for any debts the company may accrue as well as the liability for any lawsuits that may be brought against the company. However, the bigger issue in a partnership is that now each partner can be liable for the other partner’s actions. If one partner is sued for malpractice, the other partner may suffer because of it.

Location- A limited partnership is subject to the laws of each state. There are no federal guidelines for location.

Location- The only reason location is an issue is filing for local and state permits based on the business type; may pick up and move when and wherever owner desires. Would need to file a DBA form if owner is operating under a

LOCATION- Location is irrelevant for the C-Corp since corporate tax is the same for all states.

* An owner has unlimited liability both personally and as the company owner. Liability is a disadvantage in a sole proprietorship.

Sole proprietorships and partnerships generally have a tax advantage over many corporations, especially large ones.

- Sole Traders normally only require a small amount of capital to be invested and this reduces the initial start-up cost.

Each member of a liability is held liable for their own capital contributions, but each member is protected because debts lie within the LLC itself. In a sole proprietorship, you, Mr. Robinson are liable for the whole of Kyle Grocery Stores. I would advise that this is typically dangerous, both in the case of financial losses, and also in the case of a horrific event that may turn into a legal battle, which I will also explain

This direct liability of the sole proprietor arising out of the conduct of the business together with the access of creditors to not just the business assets but also all other assets of the sole proprietor is what is meant by the “personal liability” of the sole proprietor. This is in contrast with other forms of business association we will examine in which the investor’s liability may be limited to the assets of the business (i.e. “limited liability”).

Limited liability is a socialist market economy terminology, generally referred to in the economic field. Limited liability and unlimited liability is relative, the two investors to assume its responsibility in the form of debt-funded enterprises. The so-called limited liability that is limited repayment liability means investors only invest their own capital to the business enterprise debt repayment bear responsibility, insolvency, excess liability form part of its natural exempt. Limited liability company is an important factor in the rise of big. The next partnership and individual proprietor-ships owner Normally it takes bear unlimited liability for the debt.

In a Sole Proprietorship, there are no limits on liability since the sole proprietor and the business are one and the same, thus if there was a legal dispute the business would not be sued, but the owner would. When it comes to money the sole

Sole traders consists of only one person running the business who has unlimited liability and 100 percent of the shares of the company.

joint and individual liability: Members have unlimited liability as they are liable for the debts of the business. In addition, personal assets of all partners can be used to satisfy the partner's debt.

Also, Compliances in the case of an OPC are a lot less as compared to those in the case of a Private Limited Company, in effect reducing costs.