Assignment 4 RE: Starting a Company Law Essay Paper

Assignment 4
Name
Institution
To: Business Partners
From: Wilson Jon
RE: Starting a Company
Date: 4th November, 2018
I am writing to inform you about the business we want to start. Our business deals in IT consultancy services. The company provides computer services to several clients and advices them effectively on important IT services. Owing to the continued technology development and increasing security threats especially on cyber security, the company is putting a lot of focus on IT consultancy. We aim to provide IT solutions to business owners and advice them on the best security technologies to implement to ensure that they are well protected.
In this joint venture, there is an opportunity to select from the following business entities: sole proprietorship, partnership, limited liability company, and S corporation. In sole proprietorship, a business is owned by one person to who it is registered. The person is the owner of the business and the owner is the one entirely responsible for the debts (Skripak, 2016). It is not a legal entity. A partnership is a business that is owned and operated by more than one person. Partnerships can be general or limited. In general partnerships, all the partners manage the company on equal footing and they are all responsible for its debts and other obligations (Skripak, 2016). In limited partnerships, there are limited and general partners. The general partners are responsible for operating the business and they assume the liability for the partnership whereas the limited partners only invest in the company. In a limited liability company, the company’s members are not liable for its debts. It functions the same way as partnerships. The losses incurred can be...