LAW 122 Lecture Notes - Lecture 6: Limited Liability Partnership, Lemonade Stand, Sole Proprietorship
1 Dec 2017
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No separation between business and human proprietor . Assets can be used to cover business debts. Business income and personal income are all the same. Cannot be employee of business because they are the same legal entity. Adv: simple, simple to start, simple to file taxes. Disadv: unlimited personal liability, money raised only be personal borrowing, both. Laws generally applicable to business apply to sole proprietors as well problems grow as business grows. Only if name other than human name. Exists when two or more people carry on business together with a view to a profit . Partnership created automatically when relationship begins; no formalities required. View to a profit: sharing profits (not just revenues) and losses. Engaging in ongoing activity ( not just one project) Together: jointly owning property or jointly contributing capital. Joint authority for contracts and bank accounts. Equal involvement in the business itself- especially managment. Representing individuals as partners or not objecting to such representation.
