What is a business?

A business is an activity run in a systematic, continuous and regular businesslike manner with an expectation of profit under commercial principles, such as keeping business and accounting records.

A business is different from a hobby in the respect that a profit is expected from the activity. This distinction is important particularly for tax purposes because losses from a business are tax-deductible, whereas losses generated from a hobby are not.

What are some of the common types of business organizations?

   The most common types of business organizations include:

  • Sole Proprietorship – you are the only owner of the business.
  • Partnership – This can take on the form of a regular partnership, a general partnership, limited partnership or limited liability partnership.
  • Corporation – the default form of a corporation is a C Corporation (also known as Subchapter C Corporation). Smaller corporations typically file for the S Corporation (Subchapter S) tax election so they are not double taxed.
  • Limited Liability Company (LLC) – a hybrid formation that provides personal liability protection similar to a corporation, with the flexibility and tax advantages of a single proprietorship or partnership.

For more information about Business Law, or to schedule an appointment, contact

Foley Law Offices, PLLC at (734) 462-7500 or (248) 486-1700

  • Contract Basics : Breach of Contract

A contract is an agreement to do or not to do something specific. It is formed when one party offers to do something, the second party accepts the offer, and something of value is given which supports the promises made. A breach of contract occurs when someone fails to perform the agreement.

  • Contract Damages

When most people sign a contract, they expect to honor the terms of the contract, and hope that the other party will do so as well. There are several kinds of contract remedies available to you if the other party breaches, or breaks, a contract. This article explains those options.

  • Contract Modification

When negotiating a contract, or after a contract has been signed, you may have reason to want to modify, or change, a contract. Find out how to modify a contract, either before it’s been signed or after it’s been signed.