Legal Underpinnings of Business Law Essay

The key to limiting liability ikon is to realize where your company might be vulner able. It is important to be able to recognize possible situations that make a company vulnerable. Knowing each possible significant aspects of any liability associated to the type of strain an proprietor wants to participate in is vital. A business owner should always experience and have working knowledge of all laws that apply to your business to block liabilities. Personal Business VentureMy future individualized business opine would a clothing line for buxom women. As a curvy woman, it is very difficult to find non-geometric, non-tent like, flower patterned, ugly business and workaday clothing. The best business organizational form for this business would be an LLC. LLCs are easy to set up. Chose a business name that incorporates LLC, charge an article of organization, create an operating agreement, obtain licenses and permits, hire employees, and finally on the loose(p) the doors.I woul d 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 flexible. The positives are less record keeping and more win 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 erst a member leaves, the entire company must complete their duties and responsibilities and and so dissolve. Another down fall is that self-employment tax contributions towards Medicare and Social Security. The net income of the LLC is discomfit to this tax. The federal 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 separate a nd taxed as a corporation by federal tax law.