Bill, a recent NEU grad, has decided to start a business based on the software p
ID: 383334 • Letter: B
Question
Bill, a recent NEU grad, has decided to start a business based on the software program he wrote that audits social networking webuites He heir sites. He is getting very busy and thinks that he will be haning a couple of that he should seek legal advice about the best way to conduct his business. Some harve said that Ball should incorporate, others have talked to him about something called and LLC and still others have said it is fine to do nothing. B MGT2330 and know a thing or two about business oeganizations. So he asks you for your recommendation tacture bas business What advice will you give him and why woald you reccmamend one counse of action over Explain your advice il knows you recently completodExplanation / Answer
Bill has decided to start a business. As he has already got clients and planning to hire people working under him, so it is better that Bill should incorporate and form a legal entity or company. Bill should incorporate the company which involves drafting legal documents called Articles of Incorporation.This list the primary purpose of the business, name and location of the company, number of shares and class of stock being issued.
The major advantage of Incorporation is that all the liabilities would be shared by the shareholders and one person is not held responsible for the loss. At the same time, the corporation does not get dissolved with the death of the major owner of the company and can continue its operations under other shareholders. If later on,Bill wants his company to be publicly listed, then he can do it only if its incorporated. A Limited Liability company does not offer the facility of making the company publicly listed and it gets dissolved as soon as the major owner dies.
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