BU231 Lecture Notes - Lecture 12: Sole Proprietorship, Fiduciary, High High
Document Summary
Same contract only your own and supervised. No distinct legal existence from the person owning the person. The business and the person who owns it are one. You cannot sell it as a going concern. Number 1 thing: you get to be taxed at the lowest tax rate and then dividend out. You can play with the timing (retained earnings) Looks more like a sole proprietorship or a partnership than it ever does a corporation. 2 people carrying on business to make profit. As long as there is 2 of you, just take the sole proprietor characteristics. No separate legal identity from the people that are the partners, they are liable. You can sue one partner or all partners. You owe fiduciary duty to all of the other partners, must have their best interest as well as the entire business. Agency: you can go out and contract on behalf of all of your partners.
