I previously worked for a law firm that had started out as a partnership between two
attorneys. Within this law firm, they had other attorneys employed as well as the office
staff. Throughout the life span of the firm one of the owners no longer practiced law but
kept his interest in the firm. As I did the bookkeeping I learned this partner still received a
paycheck from the attorney that was working since his name was still titled to the firm. As
time went on it was apparent the attorney that still was practicing was responsible for
making all ends meet. Eventually, the attorney that was still practicing passed away
unexpectedly. We that were working for the firm at the time had to make some
adjustments. One of the attorneys that were working under this firm was owed a lot of
money from the attorney that passed away. The partner that was alive had to be bought out
now should they wish to keep the firm going but with circumstances of changing the name
and removing his. The attorney that was owed money received the firm for payment from
the family of the deceased attorney, however, he had to agree to buy out the other attorney
as well. Now I do believe if this firm was a corporation or sole proprietorship things would
of went a completely different direction once the attorney passed away. When you have a
corporation and someone passes the next chain in command usually takes over and
operations can continue as normal. I am actually the owner of a sole proprietorship, but my
business is very small. I have all the measures like paying taxes, have insurance and have a
company name to name a few. I decided to stay small due to me already having a full time
job for the time being while I finish school. the advantages of it is that I am able to make
my own decisions about my company and can control the income. For example, when I
knew that my advertising needed to be picked up due to me needing more income I was
able to make the changes without having to meet with anybody about budgets or which
company I would hire for my advertising. One of the disadvantages would have to be the
liability and that is what scares me the most which I choose to stay small. While one day I
might choose to go larger with my work the possibility of actually making the company a
LLC has crossed my mind. When I was first starting off with the company, I was very
lucky when I went to the courthouse to register my name there was an amazing lady who
guided me through every step. At least as of now, you are in total control and you can
juggle the multiple worlds on a day-to-day basis. Once you become an LLC then you may
lose the money invested and no longer have the ability to control day-to-day operations
100% as you do now, however you could have fewer risks to worry about should you incur
a lot of business expenses.
When a local business can give back to its community by spreading and speaking the
knowledge of a "body" of people positively, it is refreshing. I have tried a few times to
google review businesses that I believe in however unless the business is booming with
media attention or well known due to its own branding; reviews sit at.Owning a franchise
could be very beneficial to a person I feel. Being backed by the big corporations name can
help with business setting the standard of the business. A lot of franchises have a a lot of
rules and guide lines to follow from food to what the employees wear while working.
Chick-fil-a has always had professional standards and make sure that they are getting
people through as fast as possible. I remember when they opened the drive thru only during
the pandemic they had people getting through a wrapped line in twenty minutes. I feel like
having these standards on how the business looks and runs helps with the day to day
function of the business. Everyone knows what is expected of them and how to present
themselves. Even though the fees and costs are high to join a franchise it also provides a lot
of protection when it is needed. In my understanding, within a corporation, the
shareholders, directors or owners are protected from being the target of a lawsuit against
them as individuals, but rather the judgement falls upon the company itself. This is the very
concept of limited liability in corporations. However, in such extreme situations where a
violation has been made, and an individual within the company is believed to be held
completely responsible for actions of the company, the court can pursue "piercing the
corporate veil" by deferring limited liability. In my opinion, this is a just process because it
is unreasonable for the company to be liable for the misjudgment of an individual who
clearly commits a violation such as fraud. No one is and should be above the law. I like
how you simply explained that LLC's are a type of protection for companies and its
members from legal liabilities. I'm sure that the process to apply for an LLC license is more
in depth than a small business, however it was interesting to learn how much flexibility
owners have when it comes to taxes and agreements. It was also assuring to learn that there
is continuous flexibility of agreements for members, as well as a government default in the
event no agreement is made. To my understanding, it seems very comparable to small
business statures. When researching local businesses for my discussion post, I came across
many small businesses that were under a LLC, and now I understand why.
