Elaine and Roy are registered nurses. They want to start a n
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Discussion 1
Elaine and Roy are registered nurses. They want to start a national home health agency, taking referrals from physicians and providing health care to homebound patients. As both parties are nearing retirement age they agreed to only be in business for 10 years. Identify the reasons why incorporation is an effective idea for their business, discuss the steps they must take to incorporate their business, and identify the steps they must take to dissolve the corporation once the 10 years has passed.
Discussion 2
Tom has recently taken over his father's landscaping business, known as THE BEST LANDSCAPING. This business has been a sole proprietorship since it was created by Tom's father. Shortly after taking over the family business Tom decided to incorporate the business after he read an article in Lawn News, advising landscaping businesses to incorporate. After taking over the business both THE BEST LANDSCAPING, Inc. and Tom have been sued by a long-standing customer whose prize rose bushes worth over $15,000 were negligently damaged by Tom's employee. Tom called a local attorney, Hector, to represent him in the lawsuit. When Hector asked for the corporate minutes, Tom said, What corporate minutes? Hector advised Tom that his personal assets could be taken if he lost the suit, but Tom said, No, don't worry! I'm a corporation; I have no personal liability! Is Tom correct? Identify and discuss the legal principle that would be applied by a court to resolve this issue, and predict the outcome of the suit against Tom personally.
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Solution Summary
Elaine and Roy are registered nurses. They want to start a national home health agency, taking referrals from physicians and providing health care to homebound patients. As both parties are nearing retirement age they agreed to only be in business for 10 years. Identify the reasons why incorporation is an effective idea for their business, discuss the steps they must take to incorporate their business, and identify the steps they must take to dissolve the corporation once the 10 years has passed.
Discussion 2
Tom has recently taken over his father's landscaping business, known as THE BEST LANDSCAPING. This business has been a sole proprietorship since it was created by Tom's father. Shortly after taking over the family business Tom decided to incorporate the business after he read an article in Lawn News, advising landscaping businesses to incorporate. After taking over the business both THE BEST LANDSCAPING, Inc. and Tom have been sued by a long-standing customer whose prize rose bushes worth over $15,000 were negligently damaged by Tom's employee. Tom called a local attorney, Hector, to represent him in the lawsuit. When Hector asked for the corporate minutes, Tom said, What corporate minutes? Hector advised Tom that his personal assets could be taken if he lost the suit, but Tom said, No, don't worry! I'm a corporation; I have no personal liability! Is Tom correct? Identify and discuss the legal principle that would be applied by a court to resolve this issue, and predict the outcome of the suit against Tom personally.
Solution Preview
Elaine and Roy want to incorporate their business. The main step to incorporation is to file an Articles of Incorporation with the state where the primary business is located. Elaine and Roy need to decide, and put in writing, the duties that they each will hold in the corporation. They need to decide who the director will be, who will be in charge of finances, or if they both will share certain duties, and so forth. After filing out the proper paperwork to file an Articles of Incorporation, the state will send back a ...
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