LEGAL FACTOR IN CONSIDERING BUSINESS

Business Legal Factors

Legal Factor in Considering Business

Introduction

Choosing an appropriate business organization is one of the most important decisions that the business owner must decide before entering the business entity. The kind of organization will help in determining how one can handle the business tax matters and either there possesses any security against the personal liability (Steingold et. al, 2004 n.d). There lie many factors which should be considered and properly analyzed while any business structure. This analysis should include the number of individuals involved in dealing with business operations, nature of business, business insurance and profitability (Jennings et .al, 2009, Pp. 222-300). This paper will mainly discuss about the legal aspects of analysis that should be considered before entering and choosing the business organization. The paper will elaborate the types of certain legal factors like, product licensing, patents, trademarks, taxation and profits, all financial decisions and legal financial immediate actions required in taking business management decisions, registration of business and legal positioning of loans.

Discussion

The legal status before considering and entering any business, must be selected for the project. The legal status of a company is the legal framework that allows an entrepreneur to do business legally. Legal statutes vary depending on whether you take one or more. But it is possible to start with a small legal structure and make it evolve according to the development of the company. Before analyzing the factors involved in legal implications of business practices, the more need is of choosing the legal way of business. There lie three major kinds of legal business; Sole Proprietorship, Franchising and Partnership (Bhat, 2008, Pp. 188-200).

The business, normally determined the financial needs of your business at the establishment of provisional accounts. When important, the creation of a company may be required to accommodate investors in the capital.

However, special care is required not to confuse "minimum capital" and "financial needs of the company." Indeed, some companies require a minimum capital, which of course has no relation to the actual financial needs of the company (Steingold, et . al, 2001, n.d).

The operation of the business

Depending on the structure you choose, the operating rules will be more or less restrictive.

In a sole proprietorship, the leader alone will deal business operations. Therefore, the rules of operation are minimized. It makes all the decisions and assumes responsibility in return.

In companies, the leader does not act on its own behalf, but "in the name and on behalf of" the company. He must observe certain formalities and obtain approval of its associates for all important acts that affect the lives of the company (Virgoos et.al, 2004, Pp. 35-45). The social system of the entrepreneur

This criterion has long been instrumental in the choice of legal structure. Indeed, some designers did not hesitate to form shell companies to be attached, as an officer in the general scheme.

The legislation has now largely moved towards harmonization of laws and the system of employees is no longer the "panacea" (Steingold ...