Llc Partnership, and Special Forms of Businesses

LLC, Partnership, and Special forms of Businesses

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LLC, Partnership, and Special forms of Businesses

The cases presented and analyzed in this document cover Limited Liability Companies, partnerships, sole proprietorships, and franchising among those special forms of business. With the world looking for more flexibility into their schedules, more people decide to open businesses of their own and at times they are unable to do it on their own. As everything we do in our personal live, what we do in or jobs or our business lives is also governed by certain rules and regulations. As a business owner it important to learn and understand the type of business is being created, their advantages, disadvantages and legal responsibilities. In the other hand, as consumers it is important to understand the type of business we are dealing with, as well as their legal obligations, and our rights. Moreover it is important to understand, as a consumer, the business type of obligations in the event of negligence, or breach of warranties.

Siva v 1138 LLC

Case Facts Richard Hess created 1138 LLC along with Robert Haines, Lisa Hess, Nathan Hess, and Zach Shahin. The purpose of the LLC was to create a bar. Through the LLC they rented a commercial building from Ruthiran Siva. The lease was for a term of five years at $4,000 a month. 1138 LLC began operating a bar at the commercial building and within six months the LLC was in default and in breach of lease agreement. Siva sued the LLC and received default judgment, but the LLC had no money. Siva then sued Hess, who argued that he was a member of an LLC and not personally liable for the LLC debts. Siva’s complaint was dismissed and the decision was appealed.

Limited Liability Company (LLC) It is “an unincorporated business entity that combines the most favorable attributes of general partnerships, limited partnerships, and corporations.”...