BUSAD 120 Lecture Notes - Lecture 25: Sole Proprietorship, Legal Personality, Limited Liability
Document Summary
Protecting the ip before you start selling/make public. Prepare a plan (including risk management - insurances) Looking at legal liability; can change business structures. Direct and operate and own business yourself. Keep 100% profits at the cost of unlimited personal liability, due to no separate legal entity. If employee negligent, sole trader still liable. Can be difficult to raise capital as a sole trader. At least 2 people owning and operating together. Governed by regulation; partnership act 1891 (qld) Mutual liability: unlimited liability for debts of the partnership. Don"t have perpetual life: if a partner dies or leaves, a new partnership is formed. No formal steps for forming the partnership. A partnership is the relation which subsists between persons carrying on a business in common with a view of profit". Must be more than 1, less than 20. Don"t have to have started the business to satisfy the requirement. Commences when you start working together towards a business.
