Business Law
Business Law is the specific body of law that regulates the operation of business and commerce. It is also called Commercial Law and Administrative Law. This includes business management structures; contracts; establishment of policies and enterprise procedures; commercial transactions; hiring practices; debtor and creditor relations; and the manufacture and sales of consumer goods.
Sole Proprietorship
A sole proprietorship is one person alone and is not a separate body of business form. This is the cheapest type of business to set-up and operate, however, as a result sole proprietors will have unlimited liability for all debts and loss of the business.
General Partnership:
This is the default and the simplest business form for two or more people that have not set up a formal corporation. In a general partnership, each of the two or more partners will have unlimited liability for the debts, losses or judgments of the business.
Limited Partnership
With a limited partnership, each of the general partners has unlimited liability for the debts of the partnership, but the limited partner's exposure to the debts of the partnership is limited to the contribution each has made to the partnership.
Corporation
Corporate owners are known as shareholders. One of the major advantages to the corporate form is that it offers protection to its owners in the form of limited liability, meaning the owners are not personally liable for losses, debts and obligations of the business itself.
Limited Liability
A limited liability company provides limited liability for all of its members, but typically can be treated as a partnership for federal income tax purposes. However, compared to corporations, limited liability companies are comparatively easy to set up and provide more flexibility than the corporate form – in this regard, LLCs are more akin to partnerships.
Contract Terms and Negotiations
Commercial contracts are the foundation of an effective business. Parties bargain for benefits and obligations under the contract relationship when there is contract negotiation. Once either party violates any content of the contract, they may be liable for breach of contract.
What is a franchise?
A company that acquires a license from another established business is obtaining a franchise. The license obtained from the established business allows the new company to do business using its business methods, trademarks, and other resources.