Law of business structures pdf

This is the simplest business structure, as this is a one person. Corporations are formed under the laws of each state with its. Pdf business law assignment on law of contract case. Your business structure determines which income tax return form you file. Choose the right business structure business victoria. Choose the right business structure to enjoy the best tax and legal benefits, save money and protect yourself. When you start a business, you have a choice as to how the ownership is legally organized. Legal entity entity company treated as a separate unitperson legal.

Different business structures offer different benefits and impose different obligations. Owners of general partnerships may be individuals, other partnerships, corporations or associations. When you start a business, its very important to choose the business structure that best suits your needs. Abe diploma in business administration study manual principles of business law contents study unit title page syllabus i 1 nature and sources of law 1 nature of law 3 historical origins 6 sources of law 9 the european community and uk law. Choosing your business structure australian taxation office. A business therefore needs to consider its aims and needs in order to choose the most appropriate type of business structure. The business is generally not a separate legal entity from the owner. Tax laws are constantly changing and the need for capital is always present, so its crucial for business owners to evaluate which business. You are the sole owner of your business, and you simply have to begin business operations in order to create a sole proprietorship.

The law permits business owners to form a limited partnership which has two types of partners. T his textbook presents business students with an introduction to the legal system. These characteristics respondin ways we will exploreto the economic exigencies of the large modern business enterprise. Companies and other business structures in south africa. Each type of business structure offers advantages and disadvantages. Use features like bookmarks, note taking and highlighting while reading business legal structures. The law of business structures provides a comprehensive but simplified treatment of the different types of business structures in south african law. The book examines the law of partnerships, business trusts, close corporations and companies, whether large or small, and whether formed for a profitmaking or a nonprofitmaking objective. Rigid silos are being replaced by more fluid structures. Unlike llcs and corporations, there are no papers to file and no fees to pay in order to set up a sole proprietorship. An introduction 4 overview access to text all of this material in this text is available in desktop and mobile browser or pdf format at. Thus, corporate law everywhere must, of necessity, provide for them. You can easily search, bookmark, highlight, and underline the text material. Types of business structures small business law findlaw.

The business structure you choose influences everything from daytoday operations, to taxes, to how much of your personal assets are at risk. Legal business structures table type ownership control liability taxation annual franchise tax sole proprietorship individual controlled by owner owner is personally liable for all business debts all business income is considered personal income to the owner and is taxed at personal income tax rates none general partnership 6 del. All business jurisdictions operate on a legal structure, and share the basic principles set out in this book. Business ownership can take one of three legal forms. Ambrose moses, iii attorney and counselor at law 1 2. Business legal structures kindle edition by patterson j. Legal and tax considerations enter into selecting a business structure. The notion that an inhouse legal team should function like an internal law firm is giving way to a vision of the legal department thats a commercial functiona function that drives economic value for the business. Discern the legal and tax implication of the various business structures. To be sure, there are other forms of business enterprise that lack one or more. Particular attention therefore is given to corporate law involving internal corporate structure, responsibilities of management, employee relations, the basic elements of contracts and negligence, and relations with suppliers, customers and lenders. A general partnership is the shared ownership of a business by two or more people. Business structures in kenya university of cambridge.

However, a sole proprietorship is easier to set up, so you could be in business. Abs is a generic reference to any form of business model through which legal services are delivered that is different from the standard sole proprietorship or partnership model. Atnership par is when 2 or more people enter into a business. Cassim, 9780702195488, available at book depository with free delivery worldwide.

The two types of unincorporated business structures are sole proprietorship and general partnership. This pdf document allows you to expand the table of contents on the lefthand side of the page. Legal structures for business organizations author. Your choice of structure will depend on the size and type of business, your personal circumstances and how much you plan to grow the business. Separate chapters discuss the origin and nature of law, contracts in their many forms, negotiable instruments, banking procedures, types of business organization, legal definitions of crimes and torts, the concept of property, environmental law, labormanagement relations law, intellectual. Alternative business structures advantages and disadvantages. Alternative business structures offer pros and cons, but many newer law firms are choosing this format for their practice. Generally, shareholders ordinary are the owners of a company public whom received dividends as their compensation. Email field should not be empty please enter a valid email.

As is the case for sole proprietorships, in a partnership, the law does not distinguish between the business and its owners. For tribal government officials who are unfamiliar with business structures, the handbook can also impart an understanding of how various indian business enterprises function by comparison. To accomplish acceptance communication is compulsory from both sides offeror and offeree. In a general partnership, two or more owners share ownership of a single business. Business legal structures are regulated by state governments, but your county or municipality also may have license requirements. Companies and other business structures in south africa is designed to comply with the sugg ested syllabus for commercial law as outlined in the saica. Business structure basics types of structure entrepreneur. The person may describe themselves as selfemployed eg the owner of a small shop, or. Firstly of all, the sole trader as the only and one operator of the business has one important downside and that is the owner of the business. Before 2007, when the legal services act was passed, any solicitor doing business in a legal capacity for the public had to do so in a law firm that solicitors owned. The most common forms of business are the sole proprietorship, partnership, corporation, and s corporation. Abs can include nonlegal ownership of law firms, publicly traded law.

For example, while writing about the legal structure of your business, you will realize the need to include a copy of your partnership agreement. Sole proprietorship the vast majority of small businesses start out as sole proprietorships because this entity is the simplest type of business organization to establish for an individual starting a business. The net income from a sole proprietorship is taxed at personal income tax rates, but a corporations profits are taxed at lower, corporate tax rates. Researchers have argued that if organizational theory is to be relevant to practitioners, emphasis should be placed on organizational effectiveness and its influencing factors 3640. This brief summarises the types of business structures available under kenyan law. A guide to choosing the best legal structure business news daily. Like a sole proprietorship, there is no legal separation between the business and the individual partners. You will save time by compiling your list of supporting documents while writing the text. Legal entity entity company treated as a separate unitperson legal from the people who own, control and manage it.

A sole proprietorship is perhaps the simplest of all the different types of business structures. A company is a widely available business entity which treated as an independent legal entity. Your form of business determines which income tax return form you have to file. The expression of an offer is to contract on certain terms by one person the offeror to another person the offeree. Request pdf on jan 30, 20, maleka femida cassim and others published the law of business structures find, read and cite all the research you need on. An overview 2 common law, equity and statute law 23 custom 25 case law 26 nature of equity 32. Companies and other business structures enter your email address to receive alerts when we have new listings available for companies and other business structures. Here are understandable explanations of subjects related to business law and the legal environment. Companies and other business structures in south africa offers a unique synthesis of legal and accounting expertise to provide a clear, practical and authoritative overview of company law and particularly the farreaching changes introduced by the companies act, no 71 of 2008. Law of business structures, the ebook isbn 9781485107712. Request pdf on sep 12, 2018, rehana cassim and others published the law of business structures find, read and cite all the research you need on researchgate. To determine what type of business structure is best operatable under such condition, each type of structure shall be examined carefully.

Request pdf on sep 12, 2018, rehana cassim and others published the law of business structures find, read and cite all the research you need on. It is important to select the most appropriate form of ownership that best suits your needs and the needs of your business. The sole trader, the partnership and the limited company are examples of business units, and each of these forms is recognised in a different way by the law. The corporate structure, however, comes with a number of downsides. Search the worlds most comprehensive index of fulltext books. A limited liability company llc is a business structure allowed by state statute. Companies and other business structures april 2020. Although general partnerships are relatively easy to form, the simplicity of their structure often comes at the cost of a significant amount of risk.

Sole proprietorship, partnership, limited liability company, and. Choosing your business structure one of the key decisions youll make when starting a business is its structure. Business structures in afghanistan 2 stanford law school. I describe the possible alternatives later in this chapter. Business law an introduction the business professor. Consider legal and tax issues when selecting a business structure.