LAW 603 Study Guide - Midterm Guide: Decision-Making, Independent Contractor, Legal Personality
7 Feb 2015
School
Department
Course
Professor
Document Summary
An individual carries on business without adopting any other form of business organization. Simplest structure: owner= business, so created automatically. Sp can hire employees (but not oneself= employer) Individual and the business are 1 and the same: all the benefits and, all the risks (eg. debts, torts, and contracts) Advantages of sp: simple (no registry unless owner wants a name trademark for the business, easy to set up, easy to dissolve. Disadvantages of sp: unlimited personal liability= so, owner shud try to limit liability thru insurances and contracts, if 3rd person is injured= can take personal house, belongings and bank account. Limited financing options: sp must borrow money personally. Legal requirements for sp: register business name (business name act (ont. )) if different than the owner"s name (eg. John= no registry but if john"s snow removal= need to register: business license (provincial or municipal) (eg. restaurants, taxis; real estate agents)
