Legal Structures for IOM Solutions: A Business Law Analysis Report

This report provides an analysis of legal structures available for the reorganization of IOM Solutions, a sole proprietorship seeking to expand its operations. It discusses various business structures including general partnerships, limited liability partnerships, limited partnerships, limited liability companies (LLCs), and business corporations, outlining their legal consequences, advantages, and disadvantages. The report recommends that IOM Solutions consider transitioning to a corporation due to the limited liability of stakeholders, ease of ownership transfer through shares, and potential for attracting capital investments. The analysis concludes that selecting a suitable legal structure is crucial for IOM Solutions' expansion and future success, with a corporation offering the most advantageous framework for growth and professional management.

BUSINESS LAW

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................
MAIN BODY.......................................................................................................................................
Types of business organization for reorganization of IOM solutions along with their legal
consequences...............................................................................................................................3
Recommendations for IOM solutions for the most suitable legal option....................................6
CONCLUSION....................................................................................................................................
REFERENCES.....................................................................................................................................
Books and Journals......................................................................................................................8

INTRODUCTION
Law can be defined as a set of rules which is being created & is enforceable by
governmental or social institutions in an attempt to regulate the behavior of individual, group or
business entity. Also, business law can also be referred to as a corporate or commercial law
which is defined as a body of law applicable to the relations, rights and conduct of businesses or
persons involved in merchandising, commerce, sales & trade. In this report, the legal business
structure available in UK along with the consequences of each option will be discussed and
accordingly, the most suitable structure will be recommended for the reorganization of IOM
solutions. The focus of this place is considered to be the pressure that influences the Sam while it
is able to present the number of opportunities. In addition to this, the sources of law, business
transactions, company’s nature and management, concept of business liability negligence, the
employer’s vicarious liability & individual employment rights will be discussed.
MAIN BODY
Types of business organization for reorganization of IOM solutions along with their legal
consequences
The operations of IOM solution have been of a sole trade for a long period. Due to which
the business almost never had to pay any pay so much attention towards the basic legal
requirements. Trading for electric parts to local garages run the business for the eight years. In
the last two years has been able to find that the business has grown a lot since it began as it has
been able to fulfill the demands of the employees. The place has been numbered to a pressure on
Sam while it needs to present a number of opportunities (Pinkovetskaia and Balynin, 2018).
This is the reason why IOM solution require a legal structure to follow for the operations in order
to make sure that the presentation of the number of opportunities can be achieved through the
expansion of the business. Hence the most appropriate form of business ownership has been
considered to be the analyzed by studying the different types of options available for the
business. However, for the need for expansion this company has decided to expand its operations
which has been the key factor towards the ways in which the operations of the business can be
considered. Hence, following are the different business structure available for this business,
General partnership:

This is the type of business in which the there are two or more people doing the business
or partnership is formed while doing the business. In this business the common-law right means
that it has no specific state of statute that is needed for the formation of the partnership. There are
different provision for this type of business to be followed as there needs to be a partnership
agreement which is essential for the partners to have an equal rights for the management of the
partnership (Gaughan and Javalgi, 2018). This is also essential for the sharing the profits equally.
This is also considered to be the losses of the distribution of the profit that is essential for the
income of the organization for the better partner. The equal rights of the management of the
partnership is important for being able to consider the agent of the partnership to bind the other
partners with each other and connect their business.
The legal requirements of partnership also require the business to have the following
documents ready. The most attractive aspects of the organization are that partnership does not
have to pay entry level of income tax. It is also considered to be the partnership that is shared in
the sole proprietorship for the most unattractive aspect for the unlimited personal liability of the
business debts. Issue with this organization is that the profit needs to be split among the partners
for being able to be successful.
Limited Liability partnership:
The limited liability partnership has been considered to be the business that is a special
type of partnership that is different from the normal partnership because it is an ordinary general
partnership which reduces the liability. The main difference between the limited liability has
been considered to be the factor that the business is able to generally accept the limitation of the
most seen partnership (Kwilinski and et.al., 2019). The focus of the organization has been
considered to be the partnership that is able to oblige with the factors that are essential to be able
to generate the success that is required. Business would have to make sure that it is neglecting
any sorts of wrongful acts of the other partners as it makes them liable towards others debts and
liabilities.
The general partnership is considered to have only a registration document with a
secretary of the state or other proper filing officers. The limited liability partnership is considered
to be very effective for the formation of the state which is going to help the business form a

limited liability partnership before the transactions of the business with the organization. In
addition to this LLP needs to file an annual report for better legal performance.
Limited partnership:
The limited partnership consists of the two different kinds of partners general partners
and limited partners. General partners have same rights, power and liabilities as partners in
general partnership. They manage the partnership, share profit and losses and have unlimited
personal liability. Limited partners are the ones which are limited to their investment in the
business. They have the limited liability similar to that of the shareholders (Luz Martín‐Peña,
Díaz‐Garrido and Sánchez‐López, 2018). The limited partnership are the flow that is able to
influence the partners to be able to form a simply for doing the business. It is also considered to
be very effective factor that influences the ways in which business organization works.
For the limited partnership filing of a certificate is very important as it contains the
information that is specified by the organization. This is also the factor that consists of the place
that is restricts the name of the limited partnership for the selection of limited partnership to
appoint the agent. The amendment of the these certificates are also considered to be the permit
that is able to help the partnership that is essential for the licensed for the business helps in filing.
Limited liability company:
LLC are the statutory entity that is neither a partnership nor a corporation. This is
considered to be a hybrid which has the characteristics of each. It can be formed in general filing
articles of organization with proper state filing officers. The provision of this organization is
related to the regulation and the internal affairs of LLC which contains an operating agreement
which is entered into by the owners. The similarity of the partnership agreement is also
considered to be most popular form of business in the world. In an LLC there are many different
types of owners. They are known as the members of the LLC which is a limited partnership or
shareholder that is not liable for the company's debts based on their status as owners (Lord,
Campbell and Van Wingerde, 2019). The members of the organization also have the rights to
manage the company business and affairs.
The limited liability company has advantages of the flow of through taxation. The
selection of the otherwise a limited liability company will not have to pay an entity level of

income tax. This is also said to be the profits, losses and other tax items flow through its
members. The transaction of the business is in which it states that the outside of the state of the
organization. Laws for this company will be providing the state the organization that is able to
govern its internal affairs and the liability of the members.
Business Corporation:
The business corporations are considered to be the form of business organization that
have its internal operations governed by the government itself. This is related to the entity
organized for profit that is under the law of one state. The nonprofit corporation are formed
under the different sections of the law and are covered by this publication (Al-ahdal and et.al.,
2020). This is very dominant form of business organization in the UK. It is very effective and
popular and viable option for the business to help the women and their main choice of publicly
traced business.
The following are the advantages and disadvantages of the corporations,
 The investors are not liable for the corporation's obligations.
 The focus of the organization is towards the perpetual existence of the business
operations.
 The capital can be raised by selling stocks and securities.
 The corporations also have centralized management for the investors to not have to
become involved in the data to day operations.
The following are the disadvantages of the legal structure of corporation,
 This is considered to be the form which costs the most for formation.
 The operations of this form is also very difficult to be operated.
 The main subject of double taxation is related to the corporation that pays a tax on its
income when earned and its shareholders that pay tax on the income that is essential for
the distribution of the form of dividends or distribution against the corporation
liquidation.

Recommendations for IOM solutions for the most suitable legal option
IOM solutions organization that has been planning to expand is operations need to select
the option of a corporation as it is going to provide this organization help in many aspects. This
can be recommended to this organization because it has the feature of limited liability of the
stakeholders. This means that the corporation is responsible for its own obligation. Its creditors
can look only to the assets of the corporation to satisfy their claims (Powell, 2020). The liability
of the owners is limited to the amount they have invested in the corporation. The ownership of
this organization can generally be transferable as it contains the shares which are exchangeable.
Therefore, this provides the business owners a strong way of exiting the company.
The large stock exchanges. This is also a very effective strategy to be able to exchange
the stock and hence allows the business with a way of generation of the capital. Organizations
generally are able to build through these investments which can be considered very effective.
This makes this legal structure very effective for the IOM solution which is going to need the
capital required for the expansion of its business operations. The level of risks which is attractive
to the individuals is to invest the corporations because it of the amount of their total risk and their
ability to be able to liquidate the investment.
This is also a factor that allows the business to develop a corporate culture that leads to a
professional management of the organization which is essential for the ways in which direct
management control can be established. This has been considered to be the factor that allows the
business to be able to attract the top-level of professional management. Generally this is the
major reason why most of the sole proprietary and partnership business tend to convert them into
a corporation that provides them the success that they required for effective management and
better business operations.
CONCLUSION
With the help of the above project in can be concluded that limited liability company is
the best form of legal structure for this organization. This project has been able to provide the
discussion about the different types of legal structure and also explain how effective they have
been in the management of their operations. In this project the advantages and the disadvantages
of the different legal structure of the business has been considered to be able to develop the
operations that affect the organizational growth.

REFERENCES
Books and Journals
Al-ahdal, W.M., and et.al., 2020. The impact of corporate governance on financial performance
of Indian and GCC listed firms: An empirical investigation. Research in International
Business and Finance. 51. p.101083.
Gaughan, P. H. and Javalgi, R. R. G., 2018. A framework for analyzing international business
and legal ethical standards. Business Horizons. 61(6). pp.813-822.
Kwilinski, A., and et.al., 2019. Formation of the entrepreneurship model of e-business in the
context of the introduction of information and communication technologies. Journal of
Entrepreneurship Education. 22. pp.1-7.
Lord, N.J., Campbell, L.J. and Van Wingerde, K., 2019. Other people’s dirty money:
professional intermediaries, market dynamics and the finances of white-collar, corporate
and organized crimes. The British Journal of Criminology. 59(5). pp.1217-1236.
Luz Martín‐Peña, M., Díaz‐Garrido, E. and Sánchez‐López, J. M., 2018. The digitalization and
servitization of manufacturing: A review on digital business models. Strategic Change.
27(2). pp.91-99.
Pinkovetskaia, I. S. and Balynin, I. V., 2018. Structure of small and medium-sized business:
results of total statistic observations in Russia. Montenegrin Journal of Economics.
14(1). pp.143-158.
Powell, J.D., 2020. Why and how to implement an incident command system in business
continuity management. Journal of Business Continuity & Emergency Planning. 13(3).
pp.250-264.