Legal entities

of partnership income or loss on their individual income tax returns and pay taxes on that share based on their tax bracket” (Entrepreneur, 2014). Corporation Tinker & Tailor’s Home Security Service, Inc.: “A corporation is viewed as a separate entity from…

exploiting loopholes in the legal system, leaving the courts with the option of uncovering the corporate veil and imposing liability upon individuals within the corporation. Today, the courts will rather enforce the principle of separate legal entity to a company as in the case of Salomon v Salomon Co Ltd, than apply the doctrine of piercing the corporate veil. However, the courts will not hesitate to pursue a person who willingly takes advantage of the corporate legal system by acting in a…

issues concerning the business entity and liability to Jane, who suffered an accident during an excursion with Arcadia Sports. It is unclear what type of business has been formed between Jeb and Josh and what liability each may have for the accident and what personal assets would be involved considering Jeb’s bankruptcy. Therefore, the main types of business entities, including advantages and disadvantages, will be discussed before providing a recommended business entity for Jeb and Josh.…

When people set out to start a company, they do not realize that one of the biggest decisions that they will have to make is the one of the first, assuming that the product has been chosen. Not selecting the best type of ownership can have consequences for the owner as well as for the business itself. The types of ownership will change the cost the ease in which the company is set up, how liable the owners are, what happens when there is a death or withdrawal of an owner, the environment of…

and Situation Lifting the veil of incorporation is permitted when the person of the company are using the incorporation of the company to deliberately frustrate a legal obligation. A veil was described as a wall between the company and its shareholders. Hence, once a limited liability company is created as of the separate legal entity principle, the veil of incorporation will be created between the personal assets of the members and the assets of the company. There are three exception…

personal liable for his business borrowings and to any creditors if his business fails. He will also be held personally liable for any claims that are not covered by insurance. A limited company is registered at Companies House and is a separate legal entity. A company can have buildings, debts, and loans it has to pay back. It is not a person, so if a company goes bankrupt, directors are not responsible for it, no one is responsible for it, and shareholders are only responsible up…

among others, facilitated the separation of ownership and control. 1.1 Separate Legal Personality Legal personality refers to the general and abstract capacity of a certain entity to operate as a legal subject. It suggests that a company is to be treated as a separate legal entity with an independent existence…

There are three main business entities can choose to form in Malaysia which are Sole Proprietorship, Partnership and Limited and Unlimited Company. It is not so difficult to understand these types of entities and the owner can know which entities is more preferable to the owner. There are few steps in forming a sole proprietorship and a partnership entity. Firstly, determine the name of the organization which is unused by any business establishment or other entities. Register the business name…

In addition to insurers and producers being subject to criminal penalties, federal and state law provides for criminal sanctions against any person or business that engages in criminal misconduct dealing with insurance matters. Licensed Business Entity Regulation In the earlier chapter we made a distinction between different types of licensees- producers, business…

A company is recognized as a separate legal entity and yet in reality, it is an association of persons who are in fact beneficiaries of the corporate property. It is therefore understood that corporate personality of the company can be used as a medium of committing fraud or illegal acts. Now, there is arises a paradoxical problem pertaining to the important legal question : Who accords for the liability? Who can be held responsible? The notion of corporate personality does not obviously…