globe12321
Mar 24, 2008, 03:52 AM
Hi...
The question is...
Finnis McGinnis is the sole proprietor of a small bee keeping business called “The Bee’s Knees” in regional Victoria. He is worried about his personal liability in relation to law suits and debts incurred in the course of his business. A friend told him that he could reduce this risk if he incorporates his business. Mr McGinnis approaches you for advice. He wants to know how incorporation would affect his current business structure, in particular, his personal liability. Are there limits to the protection it provides? Also, what is the most appropriate form of corporate organization given his circumstances and why? Note that Mr McGinnis wishes to retain complete control of the company as its sole director, shareholder and employee, is this even possible?
The question is...
Finnis McGinnis is the sole proprietor of a small bee keeping business called “The Bee’s Knees” in regional Victoria. He is worried about his personal liability in relation to law suits and debts incurred in the course of his business. A friend told him that he could reduce this risk if he incorporates his business. Mr McGinnis approaches you for advice. He wants to know how incorporation would affect his current business structure, in particular, his personal liability. Are there limits to the protection it provides? Also, what is the most appropriate form of corporate organization given his circumstances and why? Note that Mr McGinnis wishes to retain complete control of the company as its sole director, shareholder and employee, is this even possible?