What does legal framework means?

like the legal framework of an issue?

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  • 8 years ago
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    Legal Framework for Electronic Filing

    System—Web (EFS-Web)

    AGENCY: Patent and Trademark Office,

    Commerce.

    ACTION: Notice.

    SUMMARY: This Legal Framework provides guidance on the background

    statutes, regulations and policies that support the Electronic Filing System—

    Web (EFS-Web) project. The document is provided as a reference for applicants,

    parties in reexamination proceedings, attorneys, and agents, as well as their

    employees using the system.

    Number 2

    Definition

    he structure of an organization refers to the legal framework for conducting commercial activities. Business structures other than sole proprietorships are registered within the state where the home office is located or where the main business activity occurs.

    Types

    Common types of legal organization structures include sole proprietorship; partnership (limited and general); corporation; limited liability company (LLC); trust and professional association. The types of organization differ based on factors that include the number of employees, control and taxes.

    Taxes

    Taxation varies based on the structure of an organization. Certain structure types, such as C-corporations, incur double taxation. First, the organization's income is taxed and then the shareholders pay taxes on dividends. Structures such as a limited liability partnership (LLP), limited liability company, sole proprietorship or partnership do not incur double taxation. Income from these organizations runs through the owner, partners or members proportionate to ownership.

    Control

    Organizational structures also regulate control of a business. By definition, a single owner has control of a sole proprietorship. Structures such as general partnership, LLC and LLP outline control of the business entity through legal agreements at the outset of the business. Corporations have shareholders who own and control the management of the business through an elected board of directors. The board of directors oversees major policies and decisions.

    Liability

    An organization's structure also determines liability. For example, owners of an LLC or LLP are not personally liable for the debts of the company; their assets are also protected in case of a lawsuit. A sole proprietorship is personally liable for debts and in the event their business is sued. In a general partnership, the owners are equally liable for debt and their assets are not protected in a lawsuit. Limited partnerships have general partners who are exposed to liability and limited partners who are investors with limited exposure to the invested capital. Corporations are considered separate entities in the eyes of the law. Corporations are responsible for debts and are subject to lawsuits

    Source(s): College Career Instructor
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