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Appreciating The Services Of A Legal Counselor In Business Essay

Legal Underpinnings of Business Law Comparison of my personal liability exposure as an owner because of the lawsuit

From a legal perspective, an entrepreneur and a company are similar in a sole proprietorship. The company is not an individual legal enterprise. As the entrepreneur, I am individually responsible for the company's liabilities and debts. In case I happen to breach an agreement with one of the providers, they can sue me. This will make to be personally liable for breach of contract. My personal assets -- home, car, and individual belongings are likely to be in the risk line in case of a court case. In comparison, the lawful liability as a sole proprietorship to the limited liability provided by other company types like the corporation. A corporation is an independent and a lawful entity unique from its owners. Compared with a sole proprietorship, if an organization is found liable for its activities, the complainants in such a court action can only recover from the company assets, unless an exemption is applicable. While sole proprietorships are not separate legal organizations without limited liabilities, the company's framework offers several advantages (Seaquist, 2010).

Whether I am the complainant proceeding against a sole proprietorship, or my company protecting against a court action, I must consider the services legal counsel. Although a legal counsel will not be required, each lawsuit relies on the facts and conditions at hand. If I am a sole proprietorship protesting a court action, I must search for professional assistance because my personal properties will be at the risk of being confiscated.

How to limit liability exposure as an owner

As an owner, I am charged with a duty of acting with reasonable care at all times in order to avoid harming others through carelessness. The law empowers me to take the precautions that a reasonably prudent business owner is expected to take. This...

If I fall short of this and cause harm to others, I will be legally liable. One of the best areas to start to restrict my liability exposure is to plan my company in a way that sets my exposure to relaxed liability levels by considering my resources, tax needs, and the company management. My business' liability risks can be reduced in case they are organized and handled properly from beginning (Macmillan, 2013).
In terms of entity formation, it is important to review all the possible choices. How my practice is organized eventually affects the level of its exposure to liability, as well as how it must be handled and covered. I must perform an extensive risk evaluation to assess my desired needs. It is a complex procedure. Finding a lawyer who is knowledgeable with establishing up legal organizations is crucial in order to assess all of my prospective liabilities. For example, when establishing up the business, I will have to choose whether we will seek the services of a legal counsel as an independent specialist or a company worker. I will opt for an independent specialist simply because the expert liability risk is reduced as opposed to other choices (Pacces, 2010).

Business experts suggest the need to deal with a tax consultant or a lawyer to help in choosing the most appropriate enterprise that will satisfy my endeavors. In his case, my practice will be structured as a sole proprietorship organization. My business practice will be organized as a separate entity. It is essential to get the facts of the enterprise right from the beginning. While modifying types of organization later is possible, it can be time intensive and expensive.

It is important to establish formal processes by creating written office procedures and processes for the business to follow. It is logical to ensure that the policies regulating my enterprise clearly…

Sources used in this document:
References

Seaquist, G. (2010). Business law for managers. Sydney: Martin Books.

Macmillan, F. (2013). International corporate law annual: Vol. 2. Oxford: Hart.

Pacces, A.M. (2010). The Law and Economics of Corporate Governance: Changing Perspectives. Cheltenham: Edward Elgar Pub
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