Partnership The nature of the law governing limited liability corporation (LLC) allows owners to dictate the percentage of ownership in any fashion they deem appropriate (Internal Revenue Service). Because LLCs are a hybrid form of business operation that enjoys benefits of both a partnership and a corporation, Stratum and Brown can handle the capitalization of their business, the distribution of profits and losses, compensation for services, and the proportionate responsibilities in the operation of the business in any manner that they prefer. Although a written agreement documenting these various issues is not required, prudent management would dictate that this is done (Horvath). Stratum and Brown had the foresight to document their agreement but failed to clearly set forth how Brown's services would be valued and how they would be treated. Obviously, her services have value but unless the parties can agree as to how such services are to be treated, a potentially large problem exists. Absent a provision in the operating agreement to the contrary, Stratum and Brown are considered as equal members and share equal authority in the management of the company but he would lack the authority to appoint his son as a manager absent...
Brown's withdrawal presents some interesting problems. What effect it has on the operation of the business depends on the jurisdiction, its LLC statutory language, and the terms of the operating agreement relative to such situation. Depending on these factors the business may be able to continue operation or the business may have to be dissolved in accordance with traditional partnership laws (Miller). As to what Brown may be entitled to upon her withdrawal from the business, is dependent upon how her services have treated by the company's accountant. Such information is missing from the facts provided so a clear determination is not possible. Finally, absent a provision in the operating agreement prohibiting her from doing so Brown is free to purchase and compete against her old company.
Partnership agreement can be described as a voluntary contract between two or more parties towards the accomplishment of a mutual goal or objective. In most cases, a partnership agreement is the legal and written agreement between partners in a business. However, in some situations, a partnership agreement is an oral agreement where terms are implied upon the parties with no written document. Notably, the oral partnership agreement is still enforceable
During this Diaspora, the African Slave Trade transferred 9-12 million people from one continent to another with major repercussions on cultural and political traditions in the New World. There have been a number of modern Diasporas based on the post-Cold War world in which huge populations of refugees migrated from conflict, especially from developing countries (Southeast Asia, China, Afghanistan, Iran, Latin America, South American, Rwanda, etc.). Part 1.2.1 - Civil
Laws Relating to Different Businesses Laws Related to Different Businesses Entrepreneurship is the hallmark of the U.S. economy and more people are starting their own ventures today than ever before. While starting a business, one of the most overlooked aspect is the laws and legal requirements. A good amount of time and effort should be spent on understanding and implementing these related laws because they will make the operations and expansion easy
This essay provides a brief overview of several of the key factors in conflict of laws, including the areas where choice of law is likely to be at issue. Domicile Domicile is one of the key factors in choice of law. Domicile is not the same as location. Instead, domicile is a legal fiction connecting a person to a location for a specific purpose. Domicile impacts jurisdiction and choice of law.
Procurement The law is both imaginary and complex, yet affects each and every one of us on a daily basis on a number of different levels. In the business world, the law takes on new meanings and new forms as commercial exchange is guided by their principles. The purpose of this essay is to examine the legal aspects of procurement and how this idea can shape the different aspects of trade
Not all offense levels are entitled to a jury trial and each jurisdiction has its own standard in this regard. As a general rule, however, any offense involving the possibility of incarceration as a sanction is entitled to the benefit of a jury trial. This same standard is applicable, as well, to the right of every defendant to be represented by counsel. In all cases, regardless of the seriousness
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