Getting a New Business off the Ground Essay Example | Topics and Well Written Essays - 500 words

Getting a New Business off the cornerstone - Essay ExampleAdditionally, since there is a potential for product liability for Joan in the aviation split industry, Joan is de jure responsible for any damages her defective products may cause. As a repair proprietorship, she absorbs these responsibilities personally, which could shake up a large problem should a case arise where she is blamed for her products malfunction.For revenue enhancement purposes, the tax revenue rate imposed on Joans business is determined by the personal income tax rate of the owner. So, the sole proprietor of a business does not pay taxes apart from, or fall apart from, the owner. As such, this tax benefit forms one advantage of operating the business as a sole proprietor (Mauro, 2004).2. To protect her client from liabilities incurred by the business, Joans attorney might recommend a check liability political party (or LLC). The LLC model shields Joan from any blame incurred by the business. So, if s ome product she manufactures malfunctions on a plane, she cannot be held personally responsible for those who suffer from the malfunction in that case, it is just the company that is financially and legally responsible for the error.Her attorney may also suggest a corporation, which is a legal entity with its own liabilities and privileges key out from those of its members. A corporation may make more sense than a limited liability company if Joan hopes to expand her business to a larger scale, and if she can persuade investors to help grow her base of business. desire a LLC, a corporation shields Joan from the companys liabilities and debts (Moye, 2004).3. Her attorney may suggest liability insurance, which is an insurance system that can protect Joan from the risks of liabilities imposed by lawsuits. If Joans company were to be accused of slight or error in manufacturing its aviation parts and brought to court in a civil suit, Joans liability insurance would