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A disadvantage of organizing a business as a sole proprietorship?
If your business fails with debts you are personally liable. You only have yourself to blame.
What Is The Government Insurance Against Business Risk?
In case your small business fails, in its total or only with regards to a selected project, government insurance will temporarily help you with business loanpayments. This warranty on your behalf is one way the government helps improve your odds of getting small business financing.
What is the meaning of single propiertorship?
only one person is in charge or established the business.
Difference between partnership and public limited company?
A partnership is a legal term to define a joint venture of 2 or more persons. In a partnership all of the partners are jointly and severally liable for any losses. In this type of arrangement each partner can be forced to pay for all of any debts. They would then have the option of going after the other partners for their pro-rata share of the debt. In a limited partnership the only entity liable for the debts is the "general partner". The general partner can be either a person or another partnership or corporation. In a corporation the corporation is the only entity liable for debts. The owners are not liable. The corporation is a fictional "person" in the eyes of the law.
What are advantages of incorporating a business?
The single largest advantage of incorporating a business -- the reason most companies do it -- is limited liability. Limited liability is a critical business advantage in today's litigious world. If you do not incorporate and your business is sued you can be held liable for all damages. The claimants can take your personal assets, e.g. your home and your car, even if they are completely unrelated to the business. If you are incorporated (and it holds up in court, i.e. the lawyers don't "pierce your corporate veil") then only the assets of the business can be seized.
Only one person is liable if the business fails?
proprietorship
A disadvantage of organizing a business as a sole proprietorship?
If your business fails with debts you are personally liable. You only have yourself to blame.
Why are entrepreneur considered risk taker?
because entrepreneurs are the only person who is liable in taking care of the business he may establish, whether the business will succeed or not.
Why are entrepreneur considered a risk takers?
because entrepreneurs are the only person who is liable in taking care of the business he may establish, whether the business will succeed or not.
Why do many business owners prefer corporations over other forms of business organization?
If a business is a sole proprietorship (one owner) or a partnership (more than one owner) and it fails financially then the owners can be liable for the debts of the business. This means that any assets (houses, cars, personal bank accounts) can be seized and sold to satisfy the creditors of the business. However, if the business is incorporated (Inc.) then if it fails only the assets held by the corporation itself can be attached. The "officers" of the corporation (usually the true owners) are not liable for the debt as long as they did not do anything illegal within the framework of the business/corporate contract. So by incorporating the owner is protecting his personal assets as separate from the business.
Can you sue someone if you park in their driveway and someone hits you?
No. The only person who is liable is the person who hit your vehicle.
If you co sign for an auto loan and the person you co signed for is in an accident can you as the co signer be liable for injuries or damages?
No, you can only be liable for the loan. If the car was totaled and did not have insurance then you can be held responsible for the balance on the loan. Any accident or damages that occurred would be the responsibility of the driver/owner of the vehicle. All your signature did was say that you will pay the loan if the borrower fails to do so.
Is it illegal to publish something without consent?
It would be a violation of copyright law. Only the person that created the work has the ability to determine how it is published. You do not need permission to publish information about a person that is true, otherwise you may be liable for liable.
A wife divorces her husband she isn't on any paperwork for the business is she still liable for any debt incurred by the business up to and including the IRS?
If the business is a sole proprietorship or partnership, then the only debts or liabilities will belong to the individuals who are indicated on the Business Resolution. This is a C-Corporation and two parties own the business that are not related If the wife is not on the corporate resolution (signature) and was never authorized to incur debt or make contracts on behalf of the business, then she is held harmless (not liable).
When only one person owns a business it's called?
Sole Proprietorship is a business owned by one person
Can owner of a company be held personally liable?
The owner can be held personally liable for business debts, but it depends on the business structure and what type of contract the owner holds. If the owner is operating a sole proprietorship (he/she is the only owner), the owner and the business are technically considered the same entity, meaning the owner has full personal liability for any business debt. In a partnership, the business belongs to each partner, meaning that business debt also belongs to each partner personally. Each partner is liable for 100% of business debts. The only time an owner is not held personally liable for debts is in a corporation or LLC. In both of these cases, the business and owner are considered separate entities and, in theory, the owner could have no personal liability for business debt. Liability could occur if the owner has signed a personal guarantee, has offered his/her property as collateral, has signed a contract in his/her own name, he/she uses personal loans or credit cards to fund the business, or there is some sort of fraud or sloppy record-keeping.
Why would a large corporation become an LLC?
Generally it wouldn't. A corporation already has limited liability, so owners (stock holders) are only liable for their investment in the company and their personal assets cannot be seized if the company fails.
