Myra is transitioning from being an independent developer to starting a game development company. How should Myra release herself from direct legal liability?
(1 point)
Responses
register a business license
register a business license
report income on taxes
report income on taxes
open a new bank account
open a new bank account
separate her personal finances from the business finances
separate her personal finances from the business finances
form a limited liability company (LLC)
To release herself from direct legal liability, Myra should take the following steps:
1. Register a business license: Myra should register her game development company as a legal entity to establish it as a separate entity from herself. This can typically be done through the appropriate government agencies or local business registration offices.
2. Report income on taxes: Myra should ensure that she accurately reports all income generated by her game development company on her tax returns. This will help establish the company as a separate legal entity and comply with tax laws.
3. Open a new bank account: Myra should open a separate bank account specifically for her game development company. This will help keep her personal finances separate from the business finances and contribute to the legitimacy of the company.
4. Separate her personal finances from the business finances: Myra should maintain separate records and accounting for her personal finances and the game development company's finances. This includes using separate bank accounts, keeping thorough financial records, and avoiding mixing personal and business expenses.
By following these steps, Myra can help protect herself from direct legal liability and establish her game development company as a separate legal entity. It is important to consult with a legal professional for specific guidance tailored to her jurisdiction and individual circumstances.