Any time two or more people join together to form a business enterprise, they should also set expectations for responsibilities and obligations for the partners.
Unlike sole proprietorships or partnerships, a corporation legally exists as an entity entitled to act separately from the persons with membership interests in it.
Many sole proprietors may not even realize that, legally, they are designated as such. Because of the simplicity of a sole proprietorship, individuals can operate their businesses with little administration or legal formality.
Many entrepreneurs are excited by the idea of working for themselves — the hesitation comes in when they contemplate the administration end of the bargain: paying bills, employees and vendors and complying with regulations.
Consumers and businesses routinely call on banks to lend them funds with which to purchase real estate, automobiles, equipment and other assets.
Many entrepreneurs find both corporate and partnership forms attractive for different reasons. Forming a corporation limits personal liability for business debts and losses, while using a partnership form provides substantial tax advantages.
The Fair Labor Standards Act of 1938 (FLSA), as amended, governs the method and rate of pay to be given to virtually all employees in the workforce, including those who are members of unions.
The most frequent source of capital for small companies is owner capital investment and cash generated from operations. Often, however, these sources are insufficient to finance equipment purchases or business growth.
Partnership is one of the oldest forms of business organization. Historically, partnerships required no special formalities, but could arise simply by virtue of two or more people acting in concert for profit. Through the ages, this relationship has caused problems for some partnerships.
Many organizations wish to benefit from tax exemptions offered by the Internal Revenue Service for certain types of groups; however, the process of gaining this status can be lengthy and complex. The procedure requires time, money and technical proficiency in legal and tax implications in order to be successful.
Computer law combines law from several different areas, as applied to computers and computer use. Because of the complexity and fast-changing aspects of computer law, a lawyer can help a businessperson sort out what law applies and how to protect a business's software and hardware.