1. Your business you created back in Week One, has been notified of a possible lawuist by your crack legal team of Wee, Takeum, and Howe. They cannot provide an estimate ofthe possible dames if you lost the suit. How would you handle this on the annual year-end financial statements?

Note: this is what I wrote in week 1 about a business idea I though of. I need the questions above answered relating to my business:

Week 1:

Let us dream and say you won the lottery (though the chances of that are slim and none). You decide to use some of the your winnings to start a business, as opposed to necessities like food, clothing, and housing. Why type of business would you start, proprietorship, partnership, or corporation and, product or service would you provide?

Answer: If my dreams could come true, I would love to open a business that is sole proprietorship with limited liability of a corporation. The business I would love to start up would be, Seans Property Management. I have owned a couple of homes and rented homes as I traveled while being in the service. I am puzzled at 80% of the service that property managers provide for their clients. I believe that I can manage and provide services that can attract a lot of homeowners and myself that rent properties honestly and ethically. The reason I would use the Limited Liability Company business structure is because it is sort of a hybrid of a corporation and a partnership offering benefits of both. As a rental property owner, incorporating as an LLC provides many advantages and protections legally, and helps with taxes while keeping management flexibility.

Like owners of partnerships or sole proprietorships, LLC owners report business profits or losses on their personal income tax returns; the LLC itself is not a separate taxable entity. Like owners of a corporation, however, all LLC owners are protected from personal liability for business debts and claims -- a feature known as "limited liability." This means that if the business owes money or faces a lawsuit, only the assets of the business itself are at risk. Creditors usually can't reach the personal assets of the LLC owners, such as a house or car. (Both LLC owners and corporate shareholders can lose this protection by acting illegally, unethically, or irresponsibly) This is why I believe that LLC would be a solid choice for starting my business.

As a scarred-y-cat, I think this would give me a chance as a landlord and manager to stay organized and treat my rentals and others as a business. Fore example, I could set up a bank account in the LLCs name that is separate from my personal account and use it for all rental transactions and to pay profits to my business. Just an ideaOk, Ill stop dreaming.

Please help.