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Guideline for Starting a New Business: Essential Topics to Consider
Added on -2019-09-18
This guideline provides detailed information on essential topics to consider when starting a new business, including types of business entities, product liability, agency relationship, potential real property issues, manufacture, potential personal property issues and liability issues, estate planning issues, and transfer ownership. Based on the opinion provided, it is suggested that the best plausible option for Fred and Sally is to opt for the Limited Liability Partnership.
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Case-1
Dear Fred and Sally,Thank you for appointing me as an attorney to assist you in the formation of the new business. I will be providing you the detailed guideline on the following topics, which are the essentials to start on a new business. The topics covered herewith are: - Types of business entities Sole Proprietorship, Partnership, and Corporation is the main business entities. As the name suggests the Sole Proprietorship is where there is a single owner liable for all the business decisions and have the sole right to the property, on the other hand, Partnership is between two or more persons, and is generally divided into two categories and they are General Partnership and Limited Partnership. General Partnership is one where two or more partners have the duty to share the management and is personally liable for all the debts, but, in Limited Partnerships the partners are only limited to the amount they contributed towards the capital and in this type of partnership one partner is not involved in the daily activities and the other partners acts like the general partners. The third main business entity is the Corporation, where a separate legal entity is formed and the investors buys the stocks and the board manages the business. Product liability Product liability makes the seller or the manufacturer of the product, being held liable for production of the defective products into the hands of the consumers. So, the manufacturer is primarily responsible for any defects as to the product. In her, your product Fred’s Miracle
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