Tinker & Tailor’s Home Security Service

Question: #1033

Imagine that you own each of the following businesses:

Tinker’s Home Security Service (sole proprietorship)

Tinker & Tailor’s Home Security Service (general partnership)

Tinker & Tailor’s Home Security Service (LP)

Tinker & Tailor’s Home Security Service, Inc. (corporation)

Tinker & Tailor’s Home Security Service, LLC (LLC)

1. The businesses are being sued for breach of contract. Create a matrix that lists each business, and compare and contrast your personal liability exposure as an owner as a result of the lawsuit.

2. For each business entity, analyze how you might limit your liability exposure as an owner.