Jones has the opportunity to change the election of his current sole proprietorship to an S-corporation. However, he also has the options of liquidating the business as it currently stands or make the election and then liquidate the business as an S-corporation. The business assets contributed to the used car dealership belong to the sole proprietor, Mr. Jones. Liquidating the used car dealership requires Mr. Jones to repay…
year. Ohio Rev. Code Ann. § 2305.11(A). Generally, an individual shareholder may not bring a legal malpractice action against an attorney that is employed by the corporation itself. See e.g. LeRoy v. Allen, Yurasek & Merklin, 114 Ohio St. 3d 323. When a lawyer counsels a corporation, the lawyer has a relationship directly to the corporation and not to any of the shareholders. Ohio Rules of Prof 'l Conduct R. 1.13(a) (2011). In Ohio, courts adhere to a strict privity rule which states…
10. What are the facts and outcome in the case of Guth v. Loft, Inc. and how does it apply to the duty of loyalty and good faith? Charles Guth became the president of Loft, Inc., a Candyland restaurant chain. Guth also partly owned Grace Company, which created formulas of syrups used for soft drinks (Spamann, 2014). Loft, Inc. at the time, purchase its syrup from Coca-Cola company, however, Guth was dissatisfied with the price and decided to create a new formula with Roy Megargel (Clarkson, 2015…
a firm. Social responsibility should be a natural obligation for the management team of a firm to be integrated both in their business plan as well as their operations. “Corporate Social Responsibility” can impact profits to the benefit of the corporation and has a positive influence on the society in which they operate. Providing both employment opportunities for the labor force and operating in a responsible manner following the environmental regulations of the country are ways to operate…
A closely held C Corporation and all C Corporations can donate to a charitable organization no more than 10% of its taxable income. For a closely held C Corporation that donates a computer said to be worth $725 a form 8283 must be filled out. A regular C Corporation does not need to report the 8283 form but still needs to supply details of the non-cash donation just a little less…
Introduction One of the significant reasons why a corporation is put in place is largely to attain profits. If a corporation is not profitable then there is no reason for its existence. Corporations go far and beyond to make sure that this profit-making motive is satisfied. In most cases to attain as much profits as possible means that the corporations need to ignore some of their responsibilities. The impact they have on the society, environment and culture has raised concerns over the years.…
its diverse interpretation adopted over the years and the current scenario of corporate crimes in India. It discusses the need to intensify the current punishment given to corporations and proposes alternative sanctions which would further discourage corporations from indulging in corporate crimes. Introduction: Today, corporations play an indispensable role in the society and their actions have a direct or indirect effect on individuals all over the world.…
choose from said business structures for a new or existing Christian subsidiary, it would be a limited liability corporation. A limited liability corporation is, “A company (LLC) in the United States-specific form of a private limited company. It is a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation” (Webster, 2004). I believe that this is the perfect fit…
Smith believed in the law of supply and demand. 12. There are no operational objections to capitalism. 1. The persons who provide the capital to a corporation are its 1. Executives 2. Beneficiaries 3. Stockholders 4. Directors 1. Modern corporations are, in…
I. Summary of Applicable Facts: Career Institute of America, Inc. (CIA), a non-for profit corporation formed a year ago in Delaware by its current CEO who is the majority owner and controls the company’s business. CIA is an online and classroom education organization that provides training to students in the United States auto industry, one of the country’s largest industries. Whereas, the majority of CIA’s income is from the online training courses, CIA did receive a retraining grant…