On the other hand, because corporations are considered legal persons, courts use the same principles to determine whether it is fair to exercise jurisdiction over a corporation. A corporation normally is subject to personal jurisdiction in the state in which it is incorporated, has its principal office, and/or is doing business. Courts apply the minimum-contacts test to determine if they can exercise jurisdiction over out-of-state corporations. The minimum-contacts requirement is usually met if the corporation advertises or sells its products within the state, or places its goods into the “stream of commerce” with the intent that the goods
Business owners can choose from one of several business options that the Internal Revenue Service’s offer in regards to tax (nbea.org, 2007). Antitrust law is to encourage corporate competition by restricting anti-competitive behavior. An example is a monopolization and, agreeing with a competitor on product price fixing. The antitrust laws require that each company establish prices and other terms on its own, without agreeing with a competitor. The government can stop businesses from merging or force businesses to divide into different companies to encourage competition (nbea.org,
1. From a tax perspective, and disregarding other issues such as limited liability, does it always make sense to operate businesses in a separate business entity? When might it be better to be a sole proprietor? The issue here is if it always makes sense to operate businesses in a separate business entity and when might it be better to be a sole proprietor. According to Smith, Harmelink & Hasselback.
Nontax issues include Responsibility for Liabilities, and Rights, Responsibilities, and Legal Arrangement among Owners. The responsibility for liabilities depends on the type of entity CCS chooses. “Under state law, a corporation is solely responsible for its liabilities. Similarly, LLCs and not their members are responsible for the liabilities of the business” (15-3). General partners, organized as a Partnership, are fully responsible for liabilities while Limited partners are not.
Parliament can make laws on any matter due to Dicey in ‘Law of the Constitution (1885).’ He said that ‘in theory Parliament has total power. It is sovereign'. He states a number of reasons as to how this is possible. Firstly Dicey points out that Parliament can pass laws on any subject without legal restriction therefore it is sovereign. This principle is a result of the election of the Members of Parliament (MPs), by the electorate which gives them authority to represent and pass legislation on their behalf.
Question 14-4 What is the purpose of Code Sec. 351 in regard to transfers to corporations? Internal Revenue Code section 351 permits shareholders of a corporation to defer recognition of a gain or loss on the transfer of assets to the corporation. The transfer of property may be made when a new corporation is formed or may reflect additional capital contributions to an existing corporation. Without Section 351, a sole proprietorship or a partnership would have difficulty adopting the corporate form of organization for legal and/or tax purposes because the transfer of appreciated property would constitute a taxable transaction in a recognized gain.
in distinguishing an employee from an independent contractor"); Merchants, 580 F.2d at 972-73 (same); Restatement (Second) of Agency § 220 (1957) (common law agency principles). Although courts must look to the totality of the circumstances, "[t]he essential ingredient of the agency test is the extent of control exercised by the `employer.' It rests primarily upon the amount of supervision that the putative employer has a right to exercise over the individual, particularly regarding the details of the work." SIDA, 512 F.2d at 357(internal quotation marks and citation omitted). Additional factors that are relevant to this determination include "entrepreneurial aspects of the individual's business; risk of loss and opportunity for profit; and the individual's proprietary interest in his business."
The Evolution of the Commerce Clause Business regulation is one of the most debated features of modern politics. Regulation is commonly known to effect business ability to be competitive in both internal and external markets. The federal government’s ability to regulate business has grown out of the judicial branches’ constant manipulation of the contextual meaning of various elements of the Constitution. The progressive manipulation is a non-debatable fact, but the overall benefits, or consequences is a hotbed for argument. Progressives carrying the belief the importance of a living constitution are pinned up against Originalist who quest to preserve the original founding fathers intentions behind the text of the constitution.
A state constitution is interpreted separately from, yet in line with our federal constitution. Every state has their own statutes. Just as in Federal courts every state has its own system with appellate courts and trial courts. Precedents are derived and set from the proceedings in these courts. Also they have their own administrative and executive agencies that make rules and regulations the citizens of that state must abide
The United States has an assortment of federal, state, local, and special purpose governmental jurisdictions. Each imposes taxes to fully or partly fund its operations. These taxes may be imposed on the same income, property or activity, often without offset of one tax against another. The types of tax imposed at each level of government vary, in part due to constitutional restrictions. Income taxes are imposed at the federal and most state levels.