Discussion post: Engaging in business
Each business entity has its advantages and disadvantages regarding the liabilities connected to the business. If I were to start one, I would go for LLC, which means my own property is separate from that of my company. In this type of business formation, my property may not be lured to the business in any economic crises, and I think that’s far better. Also, a Limited Liability Company enjoys in a better position to enjoy capital base through borrowing, which is not the same case with a sole proprietorship. I would never think of starting a partnership form of business at all. The fact that any member’s mistakes resulting in significant losses make me feel it is not an appropriate kind of business entity. Again, there has been reported tendencies of members quitting the partnership in times of economic crises.
Responses
Hi Consuela,
I appreciate the fact of any reason to engage in all types of business entities as you have presented. Indeed, there are a couple of considerations that someone has to make before deciding to start a business. These reasons help us with choices on what we go for in the long run. However, in terms of protecting your personal property towards reviving a business entity that has tripped into a financial crisis, what would you prefer?
Hi Monroe,
Thank you for the description you have given. I concur with you that there are several reasons as to why someone would engage in a business. These reasons are the ones that define our choices for a business entity. Notably, it necessary to engage in a business entity that will not have any effect on your personal property in case of the financial crisis. Secondly, no one would want to suffer a loss due to the mistakes of other members. In those perspectives, what would you prefer?