- April 2, 2020
Business Law for LLCs in Connecticut
BusinessLaw for LLCs in Connecticut
BusinessLaw for LLCs in Connecticut
Thestart of a Limited Liability Company (LLC) might at first seem to bethe greatest idea for new entrepreneurs. However, it is not as easyas it looks as it involves a lot of documentation in applying for theregistration. Additionally, it includes the costs of filing as wellas the involvement of an attorney who would draft the agreementbetween the owners (Tricker, 2011). Despite the fact that an LLC haslimited liabilities, there is no certainty as to its profitability.As such, there is a need to establish the viability of the companybefore starting it. Additionally, the business idea that would besold by the LLC might turn out to be a bad one once the business hasstarted. As such, it is critical that the best idea is selected andthat a risk assessment is carried out first. Indeed, starting alimited liability corporation is no easy task.
Businesslaw, which is also referred to as commercial law, is an area of lawthat consists of the various legislations that dictate how a companyis formed and how it should be run. Additionally, it is the purposeof the business law to state the requirements for starting abusiness. Briefly, according to Bennett & Bennett (2016),business law is the bedrock of the rules that business organizationsshould follow. An understanding of the existing legislation thatconcerns a particular business is critical in helping an entrepreneurmake informed decisions about the nature of the business that theywant to start. For instance, in the case of limited liabilitycompanies in Connecticut, the Limited Liability Act is the primarylegislation that contains the various requirements for individualswishing to start a limited liability company (Bennett & Bennett,2016). As such, adequate knowledge about the laws and practices isinstrumental in the decision making of a prospective entrepreneur.
Reasonsfor the Selection of the Topic
Thereasons for the selection of the topic are based on my experience indealing with an LLC. Specifically, early last year I started my LLC,without having the proper knowledge of what I was getting myselfinto. One year later, the business has failed to yield the expectedreturns. I feel that I wasted my capital and time in this venture. Assuch, through a study of corporate law in LLC, I will like to gainall the knowledge possible so that next time I know how to make mybusiness as successful as it can be. Additionally, it will be usefulto others who might want to become entrepreneurs’ so that they donot pass through the same challenges that I passed through (Tricker,2011).
Understandingthe requirements for an LLC would lead to a reduction in the coststhat are spent in consultation. Additionally, less time would bespent in the registration and fulfillment of other legalrequirements. Notably, the various legal frameworks provide for theconditions and the timelines that exist in the issuance of thecertificate of incorporation and the actual start of the business.Additionally, the best practices that will lead to the success of thefirm can only be obtained through a comprehensive understanding ofthe law of business organizations and more specifically, the limitedliability companies (Dammann & Schundeln, n.d.). The start of anLLC is no easy task and requires an entrepreneur to understand thebasics of business law for the success of the venture. As such, thistopic would be critical in providing the necessary information beforestarting an LLC.
Bennett,N. & Bennett, N. (2016). MemberRights for Connecticut Limited Liability Company – ConnecticutBusiness Litigation.ConnecticutBusiness Litigation.Retrieved 12 November 2016, fromhttp://www.connecticutbusinesslitigation.com/2014/01/articles/limited-liability-companies/member-rights-for-connecticut-limited-liability-company
Dammann,J. & Schundeln, M. Where are Limited Liability Companies Formed?An Empirical Analysis. SSRNElectronic Journal.http://dx.doi.org/10.2139/ssrn.1633472
Tricker,B. (2011). Re-inventing the Limited Liability Company. CorporateGovernance: An International Review,19(4),384-393. http://dx.doi.org/10.1111/j.1467-8683.2011.00851.x