Fundamental Legal Conceptions as Applied in Judicial by Wesley Newcomb Hohfeld

By Wesley Newcomb Hohfeld

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This is just a fancy way of saying that you are the owner of a one-person business. There’s almost no cost or bureaucratic red tape required to form a sole proprietorship, other than the usual business license, sales tax permit, and local and state regulations that any business must face. As a practical matter, most one-person businesses start out as sole proprietorships just to keep things simple. Example: Remember Winston, the graphic artist we introduced at the beginning of this book who started moonlighting in his own home-based computer graphics business?

Decisions that have some rational basis (based on facts known to managers or reported to them by someone with superior knowledge) should not give rise to personal liability even if they turn out to be mistaken and result in financial loss to the business and its owners. Let’s go back to the Lucky Lock Company and change the scenario one more time. Example: Again, Robert, Juliet, and Greg discuss at a management meeting whether to use one-quarter of the company’s cash reserves to market and sell the Neon Big-Lock Clock.

Com. Here you’ll find articles and FAQs full of free tips for starting your business. For more, read Nolo’s bestselling book the Legal Guide for Starting & Running a Small Business, by Fred S. Steingold. It offers a comprehensive, two-volume treatment for entrepreneurs on how to start and operate a business. The Small Business Start-Up Kit, by Peri H. Pakroo, gives you a quick lowdown on how to open the doors of your new business quickly, from choosing a name, to finding a location, getting a business license, and much more.

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