There are many different types of business ownership. An injury attorney needs to be aware of these different forms. The attorney needs to be sure the correct entity has been brought before the court.
What Are The Different Types Of Businesses?Sole Proprietorship
A business can operate as a sole proprietorship. This means that it is an extension of the human being who formed the business. For instance, Joe Jones doing business as the ABC Company may be a sole proprietorship. What that means is that the only legal entity that is involved in that business is Joe Jones himself. The ABC Company is simply a trade name. A trade name is also called a fictitious name for Joe Jones himself.
What Are The Different Types Of Businesses? Partnerships and Corporations
Other forms of business organization are partnerships or corporations. In addition there are limited liability companies and limited liability partnerships. There are other forms but those are the most common. Most people before going into business form either a corporation or a limited liability company. This provides them with some protection from contract liability. In other words if the corporation enters into a contract which is not guaranteed by the owners then any liability rests with the entity. The same applies to a limited liability company. There are also other advantages in terms of forming a corporation or LLC.
In a general partnership the partners may be jointly liable for any liability that attaches to the partnership. If one partner is guilty of some fault then that may apply to the partnership and the other partners.
What Are The Different Types Of Businesses? Personal Injury Claims
You need to know the form of business of the defendant. The nature of the business may have some impact on your ability to recover money. This is so if it turns out the defendant is uninsured or underinsured. That is with a partnership all of the partners may be on the hook. That gives you more assets to go after.
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Legal answers provided by Brien Roche, a personal injury attorney with over 45 years of trial experience. Contact Us today to discuss your personal injury matter.
For more information about business organization see the pages on Wikipedia.
