Acme Fireworks Essay

990 Words Nov 24th, 2014 4 Pages
Final Paper Proposal
James Collier
BUS311: Business Law I
Instructor: Daniel Malvin
9-1-2014

A sole proprietorship is a one-person business that is not registered with the state as a corporation or a limited liability company (LLC). The owner of the Acme Firework is a sole proprietor that has never changed his business entity. A sole proprietor can be held personally liable for any business-related obligation. This means that if your business doesn't pay a supplier, defaults on a debt, or loses a lawsuit, the creditor can legally come after your house or other possessions. Product liability laws cover consumer goods and goods used at a workplace. If someone is injured by a defective product or suffers loss or damage to private
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This is the type of business entity that the owner should adopt because it is the most common and since this is the owners first time he should choose this type of entity in my opinion.
A contract is formed when an offer by one party is accepted by the other party. The owner of Acme fireworks is trying to get his business off the ground and is attempting to make a contract with larger retailers something his business has never done. A contract does not exist simply because there is an agreement between people. Once you decide to establish a business, a primary consideration is the type of business entity to form. Tax and liability issues, director and ownership concerns, as well as state and federal obligations pertaining to the type of entity should be considered when making your determination. Personal and personnel needs and the needs of your particular type of business should also be considered. Domestic LLCs may be managed by one or more managers or one or more members. In addition to filing the applicable documents with the Secretary of State, an operating agreement among the members as to the affairs of the LLC and the conduct of its business is required. The LLC does not file the operating agreement with the Secretary of State but maintains it at the office where the LLC’s records are kept.
This society that we live in gets more and more litigious every day. Before, lawsuits were a form of justice, now they are often used as get-rich-quick schemes by…

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