Legal Forms of Business

Legal Forms of Business

Michaela Green

Law 531

June 25, 2012

Tad Davis

Legal Forms of Business

For this assignment we were asked to create scenarios in which we would chose certain forms of business for the proposed business venture and why we chose said business form. The first form is a sole proprietorship.

Sole proprietorship

Sole proprietorship is defined by the Missouri Secretary of the State as a single person operating in business. For the example of this form of business I chose my first business venture, an event and wedding consulting business. I listed my company MLG Consulting as a Sole proprietorship because I was the only person going into business for myself and all profits and losses would solely be reflected on me. For a business where I contract my expertise and skills with little or no additional man power to support, usually I would just hire additional staff if needed on a temporary basis. I didn’t have full or part time employees nor did I have any other partners working with me. I solely went into business for myself knowing that all risk were on me.

Partnership

A partnership is when two or more people go into business with each other, each owning a percentage of the company’s profits and losses. For this form a business I will chose my second business venture. In 2009, I entered into a partnership with my two younger sisters and together we opened a Hair Salon. We each listed the percentage of owning the business at 33.3% making us all equal partners. We chose this form of business because we each wanted to gain and profit off the success of our company and because we each worked hard on the concept and capital it took to open the business

Limited Liability Partnership

In 2012, the salon mentioned before, we decided that we wanted to expand our business brand into a product line of skin, makeup and hair care products. We knew that with taking on this venture we would need more capital and possibly an investor. So we...