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the issues were outdated and really odd, but he was talking to me about all the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.”
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