Wednesday, December 11, 2013

Reasoning of the Law


Reasoning of the Law

The reasoning that Mr. Brown was using was all legal talk. When talking to him he obviously knew that some of the issues were outdated and really odd, but he was talking to me about all the legal issues and all the red tape that I would have to do when starting a new business or any of the copyright laws that I would have to deal with. “If an individual runs a business without taking any formal steps to create an organization, she automatically has a sole proprietorship. It is, if you will, the default option. She is not required to hire a lawyer or register with the government. The company is not even required to file a separate tax return—all profits and losses flow through to the owner and are reported on her personal return.”  Dave is my  friend but during the interview he was answering as strictly my lawyer.  He was giving me advice, but making sure I took correct legal steps so I would have all the proper licensing. “When a sole proprietor dies, legally so does the business. But corporations have perpetual existence: they can continue without their founders.”

“Ownership interests in a partnership are not transferable without the permission of the other partners, whereas corporate stock can be easily bought and sold.”

No comments:

Post a Comment