• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
OpenTuition | ACCA | CIMA

OpenTuition | ACCA | CIMA

Free ACCA and CIMA on line courses | Free ACCA, CIMA, FIA Notes, Lectures, Tests and Forums

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Forums
  • Search
  • Register
  • Login
  • Latest
  • ACCA
  • Ask ACCA Tutor
  • OBU
  • CIMA
  • Ask CIMA Tutor
  • FIA
  • Buy/Sell
  • Qualified
  • Forum Rules

Sole Trade / LLC

Forums › ACCA Forums › ACCA FA Financial Accounting Forums › Sole Trade / LLC

  • This topic has 2 replies, 3 voices, and was last updated 2 years ago by Chris.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • February 9, 2018 at 11:56 am #436099
    thezadzzz
    • Topics: 23
    • Replies: 11
    • ☆

    If a sole trader is responsible for all the debts and liabilities of the his/her company, they can be sued and can sue its own name …right?

    Why can LLC’s sue and be sued in its own name when they are owned by shareholders who don’t carry the debts of the company. Unless they are talking about the directors of the firm?

    February 9, 2018 at 3:12 pm #436120
    sahe
    • Topics: 0
    • Replies: 4
    • ☆

    Rong !,Being a sole trader is the simplest way to run a business, and does not involve paying any registration fees, but you must register as self employed. Keeping records and accounts is straightforward, and you get to keep all the profits. The difference is that you are personally liable …

    Even though a limited liability company offers protection for the owners against some forms of debt, it does not ensure the company and the owners will not face civil court action. It is no more difficult to file suit against an LLC than any other business structure. A lawsuit can be brought against any legal entity for any reason at any time. Companies — including sole proprietorships, limited partnerships and limited liability companies — are routinely sued for torts both merited and frivolous. As a result, many small companies retain attorneys in an effort to protect themselves against suits filed without cause.

    February 9, 2018 at 4:13 pm #436125
    Chris
    Moderator
    • Topics: 7
    • Replies: 600
    • ☆☆☆☆

    With a sole trader, legally there is no company. A sole trader may have trading name, but legally their assets and liabilities are indistinguishable from the person. Therefore the sole trader can be sued in their own name – indeed their ‘company’ cannot be sued as it doesn’t exist!

    With an LLC, the company is a separate legal entity in its own right. The shareholders own the business, but they don’t control its activities directly. The directors control the company, on behalf of the shareholders. If the company does something, its the company that can be sued, even though it is directed by people.

    Under certain circumstances the veil of incorporation can be lifted and directors can be sued.

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA Exam Results – Comments

ACCA PM December 2020 Exam Results ACCA TX December 2020 Exam Results ACCA AA December 2020 Exam Results ACCA FR December 2020 Exam Results ACCA FM December 2020 Exam Results ACCA SBL December 2020 Exam Results ACCA SBR December 2020 Exam Results ACCA AAA December 2020 Exam Results ACCA AFM December 2020 Exam Results ACCA APM December 2020 Exam Results ACCA ATX December 2020 Exam Results

Donate

If you have benefited from our materials please donate

Donate now

You can also "donate your time" and help out other students on the Students Forums

Specially for OpenTuition students

20% off ACCA Books

Get BPP Discount Code

Latest comments

  • John Moffat on Interest Rate Collars
  • John Moffat on Control Accounts (part c) – ACCA Financial Accounting (FA) lectures
  • John Moffat on Activity Based Costing part 1 – ACCA Performance Management (PM)
  • John Moffat on Control Accounts (part c) – ACCA Financial Accounting (FA) lectures
  • vincentbegin on Interest Rate Collars

Copyright © 2021 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy